Malloy Proposes Largest Tax Hike In History
Every Tax To Be Raised
POSTED: 4:44 pm EST February 14, 2011
UPDATED: 5:41 pm EST February 14, 2011Conn. -- Gov. Dannel Malloy proposed one of the largest tax increases in state history on Wednesday.
Malloy said he was seeking $1.5 billion in new annual revenue from income tax hikes on the wealthy and middle class, and new sales tax on clothing and other long-exempt products and services.
Malloy's revenue-raising plan involves overhauling the largely flat state income tax, replacing its three rates with eight. But most of the changes, in terms of detail, occur at the middle-income levels.
The 3 percent rate on initial earnings would gradually be phased out, beginning with individuals earning more than $56,500 and couples topping $100,500.
Those who don't qualify for the 3 percent rate would face a 5 percent tax on initial earnings.
Five new marginal rates would be applied to single individuals and couples: 5.5 percent on earnings above $50,000/$100,000; 5.75 percent above $100,000/$200,000; 6 percent above $200,000/$400,000; 6.25 percent above $300,000/$600,000; and 6.5 percent above $400,000/$800,000.
A middle-class property tax credit worth up to $500 would be eliminated.
In comparison, when the Democrat-controlled Finance, Revenue and Bonding Committee tackled an imposing deficit two years ago, the panel recommended three new marginal rates that were all aimed at incomes above $500,000 and topping out at 7 percent.
Refresh this page and watch Eyewitness News for updates on this story.
http://www.wfsb.com/news/26863581/detail.html________________________
________________________
___________
WTF? I am trying to movre there to escape NY taxes.
