Malloy to propose income and sales tax hikes, fewer exemptions

The CT Mirror ^ | 2/14/2011 | Keith M. Phaneuf and Mark Pazniokas

[YankeeReb]

Gov. Dannel P. Malloy intends to propose one of the largest tax increases in state history Wednesday, seeking $1.5 billion in new annual revenue from income tax hikes on the wealthy and middle classes, and new sales taxes on clothing and other long-exempt products and services.

In a plan outlined Monday to The Mirror by his senior staff, Malloy also would extend the corporate tax surcharge for another two years and restrict tax credits for the motion picture industry, while modestly increasing incentives for research and development.

The sales tax rate would change for the first time in 20 years, from 6 percent to 6.25 percent, and it would be applied to now-exempt items such as pet grooming, hair cuts, car washes, boat services, non-prescription drugs and cosmetic surgery. Taxes also would rise on tobacco, alcohol and luxury goods.

Legal, accounting, consulting and other professional services would remain exempt.

[YankeeReb]

So let's see, industry and jobs are LEAVING CT in droves, but let's add to their burden and speed them out of this state. Notice Lawyers and accountants are exempt from new taxes, but the barber, car wash and contractor have to up their costs.

Typical tax and spend progressive, but what can you expect after Malloy was installed in an "Al Frankin" type recount.

[Biggirl]

Just plan EMBARESSED.

[Navy Patriot]

Ten paragraphs before the D word appears, and twelve before the Gov is identified as a Rat.

[longtermmemmory]

those are exempt because they are deductable anyways and then the sales tax gets deducted and then there is the whole attorney client confidentiality issue.

(any interested, there are more first year law school seats than applicants, ANYONE can become a lawyer.)

[freekitty]

That will go over like a lead balloon.

[Foolsgold]

California lost 204 Businesses and an untold number of jobs in 2010, That is about 4 per business week, this number is 4 times the number from 2009.

[Col Frank Slade]

Shocking - A NE liberal Dem raising taxes across the board. /sarc /

[therightliveswithus]

Watch the jobs leave CT

[matt04]

"The governor does not believe in punishing wealth or success," he said. "Nor does he want to drive people out of the state."

So raising taxes on people who work than giving that as a Earned income tax credit is not punishing success? Nor will it drive people out of the state. Whatever you say Dan.