State Democrats propose consumption tax on residents making at least $500,000 a year

Connecticut Democrats revealed a new proposal to tax the wealthy in the state while giving everyone else a break.

News 12 Staff

Apr 22, 2021, 6:59 PM

Updated 1,126 days ago

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Connecticut Democrats revealed a new proposal to tax the wealthy in the state while giving everyone else a break.
They proposed a new consumption tax on residents making at least $500,000 a year.
"We saw a very, very difficult year for a lot of people in the state of Connecticut. And there were also a lot of people, as you just alluded to, who did just fine during this time," says state Rep. Sean Scanlon.
The ultra-wealthy would also pay 2% more on stock market gains.
Gov. Ned Lamont, a millionaire himself, thinks it's a bad idea.
"Connecticut has got some momentum now. We've got jobs that are being created. We've got companies coming to the state of Connecticut. I don't want to do anything to stop that momentum," he says.
Lamont says to leave the tax hikes to President Joe Biden, who wants to double the federal capital gains tax.
The governor does support a mileage fee on big trucks, but critics say it'll raise grocery prices.
"I'm making a prediction that this is going to lead to the rest of us. There will be a vehicle tax on all of us," says state Sen. Henri Martin.
There would be tax relief for the working class under the plan. Connecticut's Earned Income Tax Credit would nearly double, and the state would create a new child tax credit. Restaurants could hold on to more money too.
"We tried very hard to find the balance here, and I feel like we did," says Scanlon.
Connecticut has a cap on how much it can spend. Lamont says his fellow Democrats are using budget gimmicks to get around it.
The legislature’s tax-writing Finance, Revenue and Bonding Committee narrowly approved the Democrats’ tax proposal on Thursday. Lawmakers will now spent the next few weeks negotiating with Lamont.
The General Assembly adjourns on June 9, but the absolute latest lawmakers can pass a new budget is June 30 - the end of the current fiscal year.


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