Hike in Sales Tax is only part of it

HARTFORD, Conn. (WTNH) — The latest state budget plan increases taxes and fees over a billion dollars.

While it’s true that the proposed Sales Tax hike from 6.35% to 6.85% is the biggest revenue generator in the House Democrats‘ budget plan, there would be a lot more than just that extra half penny coming out of your pocket.

If the thought of that is giving you a headache, that will cost more too; because the new, higher rate Sales Tax would be imposed on non-prescription drugs like aspirin and cold remedies.  In addition to a hefty 45-cent increase in the cigarette tax the Sales Tax would also be extended to smokeless tobacco, including e-cigarettes.

If you or your kids download a lot of music, it’ll cost you more because there’s an unspecified increase in the digital download tax.  Waiting in line at the DMV would become more taxing because the plan contains almost $100 in increased fees for licenses and permits.

It also includes the local option Restaurant Tax of up to one percent so a restaurant or bar tab could be taxed in some parts of the state as high as 7.85%.  There would be another new tax or fee on fantasy sports. The plan authorizes daily fantasy sports wagering and imposes some kind of an unspecified fee on it.

Republican Leader in the State Senate, Sen. Len Fasano (R-North Haven), described the Democratic plan as aimed towards a specific segment of Connecticut’s population.

They’re increasing the Sales Tax which is very regressive, they’ve increased fees which are going to hurt everybody. This is just a huge tax package on the middle class.”

The Republican Leader in the House, Rep. Themis Klarides (R-Derby) sarcastically described it, then gave a better remedy saying,  “It’s easy, let’s just tax everybody and hope this gets better. Do the work, make the difficult decisions and change the state for the better.”

Gov. Malloy had this reaction;  “My fear is that this is a billion dollars in additional revenue and you know, we have to analyse it.”

The Governor was pretty close in his estimate.  It’s actually $1.3 billion in new taxes and fees.

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