A Budget for Connecticut

Taxes

During the lean years of 2009 and 2010, our state did everything we could to protect Connecticut families and businesses from undue hardship. As a result, we faced difficult choices in developing the 2012-2013 budget.

Our caucus took Governor Malloy’s vision of “shared sacrifice” and ensured that any sacrifice would be fair sacrifice. Our budget promotes a responsible, balanced mix of spending cuts and tax increases to protect the middle-class and keep our state moving forward.

The 2012-2013 tax package:

Restores the Property Tax Credit at $300
Adjusts the income tax to ensure a fair distribution of the tax burden
Eliminates nuisance tax proposals on coupons, hair cuts, and car washes
Protects Sales Tax-Free Week

Legislative Changes to Sales Tax Proposals

Maintaining Exemptions for:

Coupons, discounts and trade-ins
Barber and beauty services
Sales tax free week
Auto vehicle trade-ins
Boat repair services
Car washes

Increasing the Luxury Tax to 7%

Legislative Changes to the Governor's Income Tax Proposals

	February	April
CT AGI	Original Budget Proposal Total Tax change	Revised Budget Proposal Total Tax change	Difference
20,000	-	-	-
40,000	12	12	-
60,000	500	200	(300)
80,000	500	200	(300)
100,000	500	200	(300)
175,000	795	875	80
250,000	1,275	1,400	125
500,000	3,400	5,900	2,500
750,000	6,275	13,150	6,875
1,000,000	9,900	17,400	7,500
1,500,000	10,900	18,400	7,500
2,000,000	11,900	19,400	7,500