13 Tax Proposals Worth Opposing
By State Rep. JP SredzinskiDespite Connecticut still struggling to catch up with the region and with the rest of the country in terms of economic and job growth, the first several weeks of the 2018 General Assembly were marked with proposals of new taxes and workplace mandates that will continue to throttle our potential. This week, my column addresses the new proposed taxes and fees found in Senate Bills 10 & 11; House Bills 5034 & 5035; the Governor’s State of the State Address and the Legislative Democrats’ Agenda. There have been numerous new or expanded taxes and fees introduced by legislative leadership and the Governor’s office – I call them “The Unlucky 13”:
- Increasing real estate conveyance taxes to 0.85% and 1.4% - this affects both buyers and sellers of homes in our state, making it more expensive to do business.
- Maintaining the corporation surcharge that was due to expire in 2019. We had hopes the surcharge would expire and stimulate growth, but now there’s a proposal to reinstate it.
- A seven cents ($0.07) per gallon increase in the gas tax.
- Adding a $3 fee - per tire - on all new tire sales.
- Eliminating the sales tax exemption on non-prescription medicine, meaning you’ll have to pay regular sales tax on items you buy like Tylenol, cough medicine and decongestants.
- Hiking the top two state income tax rates from 6.9% to 8.9%. Yes, this will only impact the top earners in our state, but it really sends a bad message.
- Imposing a new tax on employers – 0.05% on all taxable wages. This is directed to cover state labor department wages and benefits.
- Repealing the 7/7 brownfields program. This program creates incentives to clean up contaminated sites and reuse them for economic development; all while creating local jobs. This program not only cleans up the environment and improves our quality of life, it helps the economy. It is simply a bad idea to eliminate this.
- A special 7% tax on restaurant sales. Bad for businesses, bad for consumers and bad for the economy – this tax would levy a significant tax on those looking to dine out. It would affect everything from fine dining to Sunday diner visits.
- Limiting the $2.5 million cap on unitary tax reporting to manufacturers only.
- Increasing the hotel occupancy tax from 15% to 17% - harming local businesses like hotels as well as tourists alike.
- A new tax on pass-through entities, primarily small and family-owned businesses.
- Cancelling a planned 2020 cut in the hospital provider tax. Once again, the administration is going after the one business model that can’t pack up and leave the state – our hospitals. Employing so many Connecticut residents, hospitals need to be supported by the state government – not taxed to ruin.
the Green Balloons