Democrats Seek 6.85 Percent Sales Tax; Malloy ‘Not in Favor’ – Hartford Courant
Democratic legislators called Tuesday for increasing the state sales tax to 6.85 percent, but they still did not reach an overall compromise to solve the states ongoing budget crisis.
The sales tax would increase from the current 6.35 percent, but was met with disapproval from Gov. Dannel P. Malloy who immediately told reporters that he was not in favor of the sales tax increase.
At a time when Malloy has announced deep cuts, including that 85 towns would not receive educational cost-sharing funds for public schools, the House Democratic plan would restore most of those funds. West Hartford, for example, would lose nearly $24 million under Malloys plan. But the Democratic plan calls for a loss of only $1.36 million compared to the last fiscal year.
Southington would lose about $300,000 under the Democratic plan, compared to more than $21 million under Malloys proposal. Enfield would lose $3.18 million under the Democratic plan, compared to more than $23 million under Malloys plan.
Overall, the towns would receive $2.299 billion in the 2018 fiscal year a loss of $122 million from last year, but far below Malloys proposed cuts of about $968 million.
The towns would receive the increased funding only if the legislature approves a two-year, $40 billion budget. If there is no action by the legislature, Malloys cuts under his executive order would begin to take effect Oct. 1.
Besides raising the sales tax, the House Democratic budget would make Social Security benefits no longer subject to the state income tax in the 2020 fiscal year and allow municipalities to place an additional 1 percent sales tax on food and drink at bars, restaurants and other outlets. The plan would have no new taxes on hospitals an industry that has clashed sharply with Malloy over funding.
Both Democrats and Republicans emerged with smiles on their faces Tuesday after meeting behind closed doors at the state Capitol. They said they had productive, bipartisan negotiations about potential solutions to the deficit that included structural changes to help the state in the long term. But they admitted that saving money in the current fiscal year would be difficult because the year started on July 1.
Despite the smiles, Republicans also did not drop their long-held opposition to tax increases.
Listen, I still have the same position that I had before, said House Republican leader Themis Klarides of Derby. Tax increases are not something that we are interested in at this point in time.
While the new proposed rate on the sales tax was mentioned, Democrats are not expected to release their full, detailed budget until Wednesday.
The latest budget talks came on the anniversary of the passage and creation of the state income tax, which was signed into law by then-Gov. Lowell P. Weicker Jr. in August 1991.
All sides said the latest talks were productive, and they stood together at a news conference in a show of support that has not been evident at all times during the long, frustrating process that began when Malloy unveiled his first budget proposal back in early February.
But the harsh clashes of the past were less evident on a sunny Tuesday in mid-August.
I think a lot got accomplished today, said Senate Republican leader Len Fasano of North Haven. It was very, very good the steps that happened today.
After months of behind-the-scenes talks, some conservative Democrats still have concerns about raising taxes at all.
Sen. Paul Doyle, a fiscally conservative Democratic swing voter from Wethersfield, told The Courant that he still has questions about hiking taxes to balance the deficit that is projected to reach $3.5 billion over two years. Doyle and two other moderate senators, Joan Hartley of Waterbury and Gayle Slossberg of Milford, have balked at tax hikes as the states fiscal crisis has continued in recent months. Their votes could be key as Republicans have been mostly opposed to tax increases and Democrats hold only a slim majority in the House, with a tie in the Senate.
We have broad-based, but not unanimous, support for that, Senate President Pro Tem Martin Looney said of the proposed sales tax increase.
With some lawmakers on vacation in August, no votes are expected at the state Capitol until at least the week of Sept. 11.
Legislators are now under increased pressure because Malloy released a revised executive order that includes huge cuts in aid to cities and towns, including no educational cost-sharing aid for 85 towns. While upscale towns like Greenwich and Avon would receive no aid, Malloys order also zeroes out educational cost-sharing funds to towns such as West Hartford, Southington, Canton, Cromwell, Stratford, Rocky Hill, Newtown, and North Haven.
Obviously, the governors proposal, I think, was calculated to heighten the pressure because he laid out clearly what the painful consequences for many towns will be if there is not a budget reached by mid-September, Looney said. If there are any people whose minds have not been sufficiently focused, they certainly are now.
With no budget, the state also does not have an educational cost-sharing formula because it expired. Without a formula, Malloy would be able to allocate the funds to various towns as he sees fit.
Asked if he would veto a budget that contains the sales tax increase the Democratic governor repeated his oft-stated maxim that budget discussions shouldn't start with tax increases.
"We should analyze budget proposals based on whether they are structurally in balance and how they reach that balance,'' Malloy said.
Malloy said he is "encouraged that people are doing some amount of work, that they've collectively said they're working toward a goal where that's going to end up, I have no idea.
He added, But I'm encouraged there appears to be an urgency developing, albeit 54 days into the process. I think that's appropriate, I want a budget, I don't want to do what I'm doing by executive order."
Asked if the Republicans will support a budget, Malloy said: "In a perfect world, people should put their differences aside and acknowledge that we have to do what's best for the state of Connecticut, collectively. I'm not sure any of the caucuses could pass a budget in and of themselves."
Republicans were pleased with the Democratic ideas on structural change. A summary that was sent to legislators said the budget facilitates regionalism through changes to collective bargaining statutes, consolidates local assessor offices to achieve economies of scale, and requires votes on state employee union contracts which Republicans have supported for years.
Courant staff writer Daniela Altimari contributed to this report.
Subscribe and listen to the Capitol Watch Podcast
iTunes | Soundcloud | Google Play | TuneIn
Excerpt from:
Democrats Seek 6.85 Percent Sales Tax; Malloy 'Not in Favor' - Hartford Courant
- Hunter Biden says Democrats lost election for not staying loyal to his father - The Washington Post - July 16th, 2025 [July 16th, 2025]
- 'The powerful protecting the powerful': Democrats see an opening on Epstein - Politico - July 16th, 2025 [July 16th, 2025]
- Democrats demand Pam Bondi and Kash Patel be summoned for Epstein hearing - The Guardian - July 16th, 2025 [July 16th, 2025]
- As Trump looks to net five GOP seats through Texas redistricting, Democrats grasp for response - The Texas Tribune - July 16th, 2025 [July 16th, 2025]
- Democrats are trolling Trump and the GOP over the Jeffrey Epstein case - AP News - July 16th, 2025 [July 16th, 2025]
- Democrats Broach Potential Walkout to Block Texas Redistricting - The New York Times - July 16th, 2025 [July 16th, 2025]
- Democrats Are Workshopping New Tactics After Losses of 2024 - The New York Times - July 16th, 2025 [July 16th, 2025]
- Mamdani Goes to Washington With Key Democrats in Congress Still on the Fence - THE CITY - NYC News - July 16th, 2025 [July 16th, 2025]
- Hunter Biden says Democrats lost election because they werent loyal to his father - The Hill - July 16th, 2025 [July 16th, 2025]
- Democrats bash Trump over Texas redistricting: Act of desperation to cling to power - The Hill - July 16th, 2025 [July 16th, 2025]
- Democrats raked in money in the Michigan and Illinois Senate races - Politico - July 16th, 2025 [July 16th, 2025]
- House Democrats are trying to force the Trump administration to release the Epstein files - Axios - July 16th, 2025 [July 16th, 2025]
- I don't want to talk to MAGA voters, but Epstein gives Democrats an in on Trump | Opinion - USA Today - July 16th, 2025 [July 16th, 2025]
- Danbury Democrats formally back Alves for second term as mayor: 'We can't afford to sit back now' - NewsTimes - July 16th, 2025 [July 16th, 2025]
- Democrats Accuse Trump of Ceding Global Influence to China - The New York Times - July 16th, 2025 [July 16th, 2025]
- Opinion | Moderate Democrats cant save their party if they dont fight for it - The Washington Post - July 16th, 2025 [July 16th, 2025]
- Democrats accuse Waltz of lying over Signalgate and berate him for not expressing regret - Politico - July 16th, 2025 [July 16th, 2025]
- Assaults on ICE officers surge 830% as Democrats caught 'doxing and physically assaulting' agents: DHS - Fox News - July 16th, 2025 [July 16th, 2025]
- Democrats find reasons for hope and fear six months into Trump 2.0 - The Hill - July 16th, 2025 [July 16th, 2025]
- Gavin Newsom as the Democrats' nominee in 2028? What's not to like? - Daily Herald - July 16th, 2025 [July 16th, 2025]
- Democrats must not abandon trans girls in sports - Bleeding Heartland - July 16th, 2025 [July 16th, 2025]
- Democrats pounce on Trump's blowup over Epstein - Axios - July 16th, 2025 [July 16th, 2025]
- Trump's White House accused Democrats of inciting violence against ICE but they have no receipts - MSNBC News - July 14th, 2025 [July 14th, 2025]
- Megabill may not be a silver bullet for Democrats in the midterms - Politico - July 14th, 2025 [July 14th, 2025]
- Young Democrats have called for a rebrand. Theyre vying to replace the partys old guard - AP News - July 14th, 2025 [July 14th, 2025]
- Takeaways from AP report on Democrats already lining up for the 2028 presidential race - CTPost - July 14th, 2025 [July 14th, 2025]
- Democrats urge town hall attendees to persevere, hope in face of Big Beautiful Bill - Maryland Matters - July 14th, 2025 [July 14th, 2025]
- Video: How the Democrats Lost on Transgender Issues - The New York Times - July 14th, 2025 [July 14th, 2025]
- Florida Democrats reveal what they saw inside Alligator Alcatraz on tour - Scripps News - July 14th, 2025 [July 14th, 2025]
- Why NC Democrats think 2026 midterms will run through Rocky Mount - WRAL.com - July 14th, 2025 [July 14th, 2025]
- No, Democrats Arent Controlling the Weather. Neither Is Anyone Else. - Mother Jones - July 14th, 2025 [July 14th, 2025]
- As Democrats spoil for a fight, a new face in the House is leading them on oversight - NPR - July 12th, 2025 [July 12th, 2025]
- Young Democrats have called for a rebrand. Theyre vying to replace the partys old guard - The Boston Globe - July 12th, 2025 [July 12th, 2025]
- Young Democrats have called for a rebrand. They're vying to replace the party's old guard - ABC News - Breaking News, Latest News and Videos - July 12th, 2025 [July 12th, 2025]
- Democrats push back on trio of Trump-backed crypto bills with Corruption Week blitz - dlnews.com - July 12th, 2025 [July 12th, 2025]
- Utah Democrats work to make sure their voices are heard at the national level - FOX 13 News Utah - July 12th, 2025 [July 12th, 2025]
- Contributor: Will Democrats find an anti-Trump to galvanize the left? - Los Angeles Times - July 12th, 2025 [July 12th, 2025]
- Democrats have blue dot dreams in Nebraska - Politico - July 12th, 2025 [July 12th, 2025]
- Democrats Should Prepare for the Return of Debt Politics - Washington Monthly - July 12th, 2025 [July 12th, 2025]
- Democrats Must Find Their Nerve And Fast - The National Herald - July 12th, 2025 [July 12th, 2025]
- Opinion | This Trial of the Century Is 100. Its Lessons Could Save the Democrats. - The New York Times - July 10th, 2025 [July 10th, 2025]
- Democrats Inspire Vicious, Escalating Attacks on ICE - The White House (.gov) - July 10th, 2025 [July 10th, 2025]
- John Kerry says 'Trump was right', Democrats allowed migrant 'siege' of border - BBC - July 10th, 2025 [July 10th, 2025]
- New Survey Results: RI Democrats and Republicans are living in different realities - Salve Regina University - July 10th, 2025 [July 10th, 2025]
- DNC chair on the path to winning back voters and lessons Democrats can learn from Mamdani - PBS - July 10th, 2025 [July 10th, 2025]
- Top House Democrats demand release of Epstein files that mention Trump - The Guardian - July 10th, 2025 [July 10th, 2025]
- Jeffriess speech is proof that Democrats are just performative and reactionary - The Hill - July 10th, 2025 [July 10th, 2025]
- Mamdani's far-left allies aim to primary Hakeem Jeffries and other NYC House Democrats - Fox News - July 10th, 2025 [July 10th, 2025]
- Michigan Democrats begin highlighting constituents impacted by Medicaid cuts in Trump tax bill - Michigan Advance - July 10th, 2025 [July 10th, 2025]
- Gavin Newsom swings through South Carolina, where Democrats will play pivotal 2028 nominating role - AP News - July 10th, 2025 [July 10th, 2025]
- Democrats Ignored What Their Voters Were Telling ThemAnd It Cost Them Everything - Vanity Fair - July 10th, 2025 [July 10th, 2025]
- Republicans and Democrats Finally Agree on Nuclear. Its the Industry Thats the Problem. - Politico - July 10th, 2025 [July 10th, 2025]
- Hawley rebukes Democrats' heated rhetoric after attacks on ICE, border patrol facilities: 'Knock it off' - Fox News - July 10th, 2025 [July 10th, 2025]
- Opinion | The Gender Gap That Ate the Democrats - The New York Times - July 8th, 2025 [July 8th, 2025]
- Letter: Why Democrats are losing ground with minority voters - Reading Eagle - July 8th, 2025 [July 8th, 2025]
- Ex-gov says Democrats need to rally behind a mayoral candidate, just not Mamdani - PIX11 - July 8th, 2025 [July 8th, 2025]
- Beyond Democrats and Republicans, CT legislators split into special interests. See what they are. - Hartford Courant - July 8th, 2025 [July 8th, 2025]
- After Mamdanis Win, Some Democrats Are Determined to Stop Him - The New York Times - July 8th, 2025 [July 8th, 2025]
- Democrats retreat on climate: Its one of the more disappointing turnabouts - Politico - July 8th, 2025 [July 8th, 2025]
- Gavin Newsom swings through South Carolina, where Democrats will play pivotal 2028 nominating role - ABC News - Breaking News, Latest News and Videos - July 8th, 2025 [July 8th, 2025]
- Democrats call for probe into National Weather Service cuts after Texas floods - MSNBC News - July 8th, 2025 [July 8th, 2025]
- "There needs to be blood": Democrats' voters tell them to "get shot" in Trump resistance push - Axios - July 8th, 2025 [July 8th, 2025]
- Democrats demand CISA explain how its supporting election offices - StateScoop - July 8th, 2025 [July 8th, 2025]
- Media, Democrats try to blame Trump for Texas flood deaths - Washington Times - July 8th, 2025 [July 8th, 2025]
- Gavin Newsom swings through South Carolina, where Democrats will play pivotal 2028 nominating role - AJC.com - July 8th, 2025 [July 8th, 2025]
- Democrats try to spoil Trumps victory party by slamming his greatest domestic win - CNN - July 8th, 2025 [July 8th, 2025]
- Democrats 'seem to think that poor people are stupid,' Scott Bessent says - Politico - July 8th, 2025 [July 8th, 2025]
- Opinion | Six things Democrats need to do if they want to win elections again - The Washington Post - July 8th, 2025 [July 8th, 2025]
- Trump's $5 trillion debt ceiling strategy could force Democrats to the negotiating table - Fox Business - July 8th, 2025 [July 8th, 2025]
- How Democrats Will Make Trump Own His Disastrous Spending Bill - Crooked Media - July 8th, 2025 [July 8th, 2025]
- Opinion | D.C. Democrats tarnish themselves by resisting ranked-choice voting - The Washington Post - July 8th, 2025 [July 8th, 2025]
- Democrats might be overthinking strategy to recapture voters - The Hill - July 8th, 2025 [July 8th, 2025]
- Congressional District 7 race: Democrats Grijalva, Hernandez lead the pack in fundraising - KJZZ - July 8th, 2025 [July 8th, 2025]
- Democrats Must Find Their Nerve - And Fast - CityWatch LA - July 8th, 2025 [July 8th, 2025]
- What Democrats Think They Can Learn From Zohran Mamdani - NOTUS - July 8th, 2025 [July 8th, 2025]
- Virginia Democrats are eyeing 13 potential seats that could flip blue this year - WVTF - July 8th, 2025 [July 8th, 2025]
- Democrats call for probes of deadly Kerr County flooding to discover what went wrong - Dallas News - July 8th, 2025 [July 8th, 2025]
- Democrats trying to field candidate slate to win first statewide race in 32 years - Texarkana Gazette - July 8th, 2025 [July 8th, 2025]
- These Democrats have forgotten who they represent, GOP lawmaker says - Fox News - July 8th, 2025 [July 8th, 2025]
- Opinion | Democrats in Race to Separate Themselves from Biden - WSJ - July 8th, 2025 [July 8th, 2025]