How big were the tax hikes in Governor Ned Lamont’s budget proposal? If you include all of the proposed increases over the next few years, and account for a few tax breaks, the total comes to $2.4 billion per year.
How did we get to that number, and why is it so much higher than what’s been reported?
First, we include projected toll revenue. We used Gov. Lamont’s numbers – he expects 60 percent of $800 million in toll revenue to come from Connecticut residents. While we think both numbers will likely be higher, we’ll give him the benefit of the doubt.
Some will say we shouldn’t include toll revenue in the tax increases this year since it won’t be collected until 2024 or 2025, but if tolls get through the legislature this year and the toll revenue starts to roll in, do you really think lawmakers in 2025 will want to take credit for the tax increase? No. Better to count it now, and hold the lawmakers who vote for it responsible for the increase.
Second, we include the tax increase proposed for the new paid Family and Medical Leave Act program, which Gov. Lamont included in his budget proposal. The 0.5 percent payroll tax is expected to collect $340 million. It’s a tax increase – it should be included in the numbers for this year.
Third, some reporters haven’t included canceled tax breaks, but we do. Here’s why: If you were expecting to pay less in taxes, and now you won’t, it sure feels like a tax hike. All the seniors who were advocating over the past couple of years to exclude more of social security from the income tax will find that Gov. Lamont has proposed to roll back their legislative win.
We recognize that coming up with a number for total tax increases in the budget is not an exact science – many of these numbers are moving targets – both for the years of Gov. Lamont’s proposed budget, and the years following. So, we’re being as transparent as possible.
Here’s how the numbers break down:
- $652 million in sales tax increases, which is projected to be up to $1.1 billion by 2022;
- $515 million increase in healthcare provider taxes, which are passed on to patients through higher insurance costs and payments for medical care;
- $480 million in toll revenue, 60 percent of $800 million in expected revenue by 2024;
- $340 million raised by a new 0.5 percent payroll tax to pay for paid FMLA;
- $163 million soda tax;
- $71.5 million property tax increase by 2022, to pay for teacher pension payments;
- $70 million income tax increase, mostly from canceled exemptions;
- $50 million corporate tax increase (average of two years), includes offset for elimination of the Business Entity Tax;
- $41.6 million in license and fee increases;
- $30.2 million plastic bag tax;
- $17.8 million in other miscellaneous tax increases, including on vaping, a real estate conveyance tax increase on homes over $800,000, and an increase in the movie ticket tax;
- -$9 million for the gift tax repeal.
TOTAL: $2.42 billion a year in proposed tax increases.
Budget figures are taken from the Office of Fiscal Analysis projections, found at https://www.cga.ct.gov/ofa/Documents/year/SYNG/2019SYNG-20190221_Synopsis%20of%20the%20Governor’s%20FY%2020%20and%20FY%2021%20Budget%20Plan.pdf
March 13, 2019 @ 7:56 pm
It seems to me that our new governor hates CT residents so much that he is going to tax the hell out of us to a
point we will all have to relocate!!
Shame on him….false promises again by Democrats!!!????
March 14, 2019 @ 2:41 pm
When we heard Lamont won we knew we could not stay in Ct. We are in the process of packing and relocating down south away from these anti American communist that have taken total control of Ct
Connecticut hostage in other words: Taxpayer
March 14, 2019 @ 1:04 pm
Yet another one of my friends is moving from Connecticut to South Carolina. They are afraid to retire here, for fear of not being able to live comfortably at all. The exodus is real. Lamont should really study those numbers.
You know what the taxpayers who can’t leave should be called? HOSTAGES. Hostages of the Democrats. Some of us are unable to move for many reasons.
I will just stop shopping as much. I wonder if the legislature has factored that in. The economic slow-down that will surely come. I will plan my retirement to move out instead of staying here.
My Navy family landed here a long time ago. I thought I might stay. I feel sorry for the Navy families who have just moved here, they won’t be able to afford anything.
And taxing CATS!? What about DOGS? Too many in the dog lobby? Please. This is ridiculous.
March 14, 2019 @ 2:42 pm
It’s like a horror movie where everyone outside of CT is yelling GET OUT but the people in CT are still there, opening the door to the guy wielding the (t)ax
KEITH A KLEINSCHMIDT
March 15, 2019 @ 4:40 pm
Lamont will quickly surpass Malloy as the worst governor in Ct. and one of the lowest rated ones in America.
March 16, 2019 @ 4:27 am
“We need to get CT moving again”, Ned’s exact words. 83 proposed tolls, a tolling authority, expanding Gov’t, all these new taxes, this equates to growth? When is the Revolution? 1776!
March 16, 2019 @ 5:09 am
You’ll all crying about this you all voted this dumbass in to office. Let’s do something about it. Say no more dont pay it dont let him lie through his teeth. How come I knew it wasnt gonna be tolls on just trucks. Really people let’s stand up sometimes a little revolution is a good thing
March 16, 2019 @ 6:48 pm
We who live here are hurting so much now .since lamont got into office he is worse then malloy and i see so many people leaving ct .Lamont shame on you when u said it will a better way for the poor people what a lie
March 17, 2019 @ 1:27 pm
Connecticut is already the second highest taxed state in the nation. Do we want to be number one!
March 19, 2019 @ 9:33 am
Who will pay all those taxes if we all move out of state? Good-bye, CT.
April 5, 2019 @ 7:51 am
All I can say is those who voted for this Governor will share in this mess!