After enacting the largest tax increase in state history in 2011, Gov. Dannel P. Malloy is now offering rebates and tax cuts that would reach more than $200 million in the next fiscal year.
One day after calling for tax rebates for individuals and families, Malloy announced several new proposals Friday – including exempting 50 percent of public school teachers\’ pensions from the state income tax.
Malloy also offered two popular proposals that were proposed by House Republicans last week – restoring the sales tax exemption on non-prescription drugs and the exemption on clothing items costing less than $50.
The overall two-year package would reach more than $250 million in rebates and tax cuts if approved by the Democratic-controlled legislature in the 2014 General Assembly session that begins Wednesday. In a chart, Malloy included more than $180 million in tax breaks that were already approved by the legislature for the next two fiscal years and said that the total was \”nearly $450 million.\’\’
Senate Republican leader John McKinney, who is running for governor, said it was \”disingenuous\’\’ for Malloy to say he was cutting taxes by nearly $450 million when $155 million is one-time rebates and about $180 million is already on the books in previously approved reductions.
“Will the real Dan Malloy please stand up?\” McKinney asked. “During the last three years as governor, while not running for reelection, Governor Malloy raised taxes, punished teachers and retirees, and saw deficits everywhere. Now, in an election year, he proposes tax cuts, panders to teachers and sees surpluses even in the face of a $2 billion deficit. Maybe we should have elections every year?” Continue reading