HARTFORD, Conn. (WTNH)– Some crucial votes in Hartford Monday could determine the future of the budget and the future of your taxes.
Meanwhile Governor Dannel Malloy is warning more than a thousand state employees could lose their jobs.
The biggest, scariest number is the projected state budget deficit – $1.7 billion. Governor Malloy had said he did not want to try to fill that hole by increasing taxes yet there is talk about some tax hikes going on.
The sales tax, for one thing. Right now it is 6.35%. There is a proposal to raise that to almost 7%. Just a few tenths of one percent could bring in as much as $450 million in new revenue. There is also talk about raising income taxes on people who make a lot…the so-called millionaire’s tax. That would be for people who earn in the high six figures and up
Then there’s a tax shift, something some people are calling a tax hike. It involves teachers’ pensions. Maintaining the teacher pension fund costs the state $1.2 billion. There is a committee vote this week on a proposal to shift a third of that cost – $400 million to the cities and towns. While that would save $400 million from the state budget, some say it would just mean all the cities and towns would then have to raise property taxes to pick up the slack. Many are saying that is a tax hike, too. You’re just writing the check to your town instead of the state.
And speaking of cutting costs, the Governor is looking for concessions from state labor unions to try to lower costs of pay and benefits, and he is once again threatening layoffs if he doesn’t get those concessions. He says eleven hundred employees could get pink slips, starting as early as next month.