State Senator David Cappiello (R-Danbury) today blasted the Democratic state budget plan that proposes to raise taxes nearly $1 billion yet fails to offer any reasonable spending reductions. The House of Representatives is expected to take up the plan today. If passed into law, today’s bill would still leave the state $120 million dollars in the hole.

“This is an outrageous plan that demonstrates no regard for the average taxpayer,” said Senator Cappiello. “As I had feared, what began as a plan to tax only those with incomes of more than $1 million, has now been expanded to impact thousands and thousands more Connecticut citizens. Now, individuals making $53,126 will see their income tax rate increased to 5.0%.”

Today’s bill would also eliminate tax exemptions for health and athletic club services, media and advertising, newspapers and magazines, and water companies. It also would reduce the current tax exemption on clothing and footwear from $75 to $50 as well as increase the tax on computer and data processing services to 3.0% effective March 1, 2003.

“What I find most disappointing is that this legislation, in addition to including unreasonable tax increases, contains no long term structural reforms that would help keep our state’s finances secure in the future,” said Senator Cappiello. “Unfortunately, these tax increases may not be the last we are forced to deal with. Because today’s plan includes so few long-term spending adjustments, the state will be forced to look at raising taxes even more to balance the budget in Fiscal Years 2004 and 2005.”

Senator Cappiello was also annoyed that the bill targets those enrolled in ConnPACE and Medicaid while at the same time protecting unionized state workers. The bill would increase the co-pay from $12 to $16 and in some cases $20 for those enrolled in ConnPACE and would also institute a co-pay for certain Medicaid services.
Previously, union leaders had rejected a proposal that would have only slightly increased co-pays for unionized state workers.

“This just demonstrates that union leaders and those in favor of this bill are concerned with protecting the benefits of unionized state workers over everything else,” said Senator Cappiello. “Rather than requiring these state workers to make some slight concession on their benefits, which are already far and away some of the best in the country, they are instead opting to heavily tax the elderly in order to balance the state budget.”
Today’s expected vote also comes despite the fact that no public hearing has been held on the budget.
“To propose a bill that would raise taxes in Connecticut by nearly $1 billion without even holding a public hearing on the matter is disingenuous to the people of Connecticut,” according to Senator Cappiello. “Furthermore, it is astonishing that here we are, a month into the session with the state facing its most difficult financial situation in a decade, and the Finance Committee has not met even once to debate this or any other proposed budget.”