New Connecticut Governor Ned Lamont has floated various tax hikes leading up to his formal biennial budget proposal, but now we have the full plan, and it’s not a cheap one for the state’s already-overburdened taxpayers.
His “A Path Forward” plan is filled with tax increases, broken promises, and high fees. The unambitious name is fitting, it’s a path alright, one terrible path to choose among other options – like finally containing Connecticut’s rising spending, and pension liabilities.
The total bill for Lamont’s revenue proposals exceeds $1.06 billion in 2020 and $1.486 billion in 2021.
The massive amount of tax hikes the Governor has proposed is led by sweeping new applications of the state’s 6.35 percent sales tax, and taking away sales tax exemptions that sensibly have been used to ease costs on necessities, like doing your taxes, or buying textbooks. The Governor’s assault on exemptions will also hurt Connecticut residents who belong to non-profit credit unions. Credit unions by their nature return benefits to members who live in the community, and often offer free educational services. And interestingly newspapers will be hit as well, maybe Lamont isn’t happy with his media coverage.
It is incredible how damaging and tone deaf these new sales tax are… Need to take your dog to the vet? That will cost more. Does your child need a bike helmet? That will cost more. Ready to drive your new baby to Mom and Dad’s house? Safety seats will cost more.
If Lamont wants more uniformity in the state sales tax, he should lower the rates for everyone, not discourage people from purchasing necessary products and services, and make it even more unaffordable to live in Connecticut.
Here’s the rundown of notable Lamont’s tax hikes (full list here):
- 10-cent plastic shopping bag fee
- Soda tax
- Text book tax
- Newspaper & magazine tax
- Renew corporate tax surcharge
- Boat sales tax hike
- Bike helmet tax
- Child car seat tax
- Veterinary services tax
- Credit union tax
- Hair cut tax
- Parking tax
- Garbage tax
- Camping tax
- Nonprescription medicine tax
- Vaping wholesale tax
- Movie tax
This could get worse if the Democrats’ Senate Bill 475, which would increase the statewide sales tax to 6.85 percent also gains traction.
Senate Republican leaders have put forward a plan that offers no tax increases, no tolls, and lowers costs statewide.