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May 15, 2007

Sen. Debicella Applauds Governor Rell’s Movement Toward
“No Tax Increase” State Budget

Senator Dan Debicella (R-21) today praised Governor Rell’s decision to back a budget with “little or no” tax increases.

“While budget negotiations are on-going, I believe Governor Rell’s statements verify that there is no need to raise taxes this year,” said Senator Debicella.

The Republicans in the legislature proposed a budget this year that contained no new taxes, with modest increases for education and healthcare. Governor Rell’s original budget contained an income tax increase from 5% to 5.5% to fund a dramatic $3.2 billion increase in education funding.

The Office of Fiscal Analysis recently showed that revenue under current taxes would be significantly higher than originally projected—much more in line with the legislative Republicans’ budget. The surplus for the current year was increased from $552 million to $847 million, with an additional $404 million in revenue for next year.

“With a surplus in excess of $800 million and a $1 billion rainy day fund, it is obvious that Connecticut residents are being over-taxed,” Debicella said. “We do not need to raise taxes, and we can still provide modest increases for education and healthcare.”

A Quinnipiac University poll this month showed that 41% of Connecticut residents support the Republicans “no new taxes” budget, while only 33% supported the Democratic proposal and 16% supported the Governor’s original budget.

Senator Debicella, a member of the legislature’s budget-writing Appropriations Committee, said that Connecticut residents certainly cannot afford the majority Democrats’ proposal to significantly increase spending.

“The Democratic leadership is telling people that, despite increasing spending by over 10%, they will cut taxes for 90% of people. This is blatantly misleading the public, because the proposal increases a number of taxes,” said Senator Debicella.

Debicella said that the Democratic proposal actually raises taxes on a majority of people in Connecticut. “The Democratic leadership expands the sales tax to clothing costing less than $50 and certain funeral expenses, and increasing the tax on cigarettes. Those kinds of tax increases would hurt a lot of middle class people,” said Senator Debicella.

“Think about your own family—can you raise spending by 10% and not increase income? Of course not. Neither can the Democratic leadership—and the Democrats’ desire to increase spending by 10% is why they are trying to raise your taxes. What Republicans are saying is that Connecticut can have a responsible state budget that meets the needs of the state without higher taxes. I am glad that Governor Rell is siding with the taxpayer,” said Senator Debicella.