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
- Democrats Lost Them: Heres Why 2020 Biden Voters Sat Out The 2024 Election - Rolling Stone - April 16th, 2025 [April 16th, 2025]
- Opinion | Have the Democrats found their version of Trump? - The Washington Post - April 16th, 2025 [April 16th, 2025]
- These Sick Criminals Are Who Democrats and the Legacy Media Are Defending - The White House (.gov) - April 16th, 2025 [April 16th, 2025]
- Obama, Healey, more Democrats praise Harvard for rejecting Trump administration's demands - Fall River Herald News - April 16th, 2025 [April 16th, 2025]
- Lawsuit alleging fraud could leave Democrats with no candidate in Onondaga Countys 9th District - Syracuse.com - April 16th, 2025 [April 16th, 2025]
- Scoop: Top House Democrats are trying to send a delegation to El Salvador - Axios - April 16th, 2025 [April 16th, 2025]
- WA Democrats propose 5 new tax bills on Tax Dayand theyre coming for the big dogs - MyNorthwest.com - April 16th, 2025 [April 16th, 2025]
- Democrats dislike the chaos of Trumps trade war but are OK with some tariffs - AP News - April 16th, 2025 [April 16th, 2025]
- Democrats Get an Unconventional Candidate in the Race Against Joni Ernst - notus.org - April 16th, 2025 [April 16th, 2025]
- Democrats newest villain is a power player youve never heard of - Politico - April 16th, 2025 [April 16th, 2025]
- Washington Senate Democrats amend 'Parents Bill of Rights' - MyNorthwest.com - April 16th, 2025 [April 16th, 2025]
- Never had an auditor do something like this. Diana DiZoglio fights, polarizes her fellow Democrats. - The Boston Globe - April 16th, 2025 [April 16th, 2025]
- New books chart Bidens downfall and the picture is damning for Democrats - The Guardian - April 16th, 2025 [April 16th, 2025]
- Democrats accuse GOP senators of affirmative action for Iowa med school - Iowa Capital Dispatch - April 16th, 2025 [April 16th, 2025]
- Rep. Josh Harder on why Democrats should be angrier at the status quo - Roll Call - April 16th, 2025 [April 16th, 2025]
- Republicans Less Trusted on Economy Than Democrats For First Time in Years - Newsweek - April 16th, 2025 [April 16th, 2025]
- Trump rode to victory on the economy. Democrats see a way to flip that on its head. - Politico - April 16th, 2025 [April 16th, 2025]
- The Next Generation of Democrats Dont Plan to Wait Their Turn - The New York Times - April 10th, 2025 [April 10th, 2025]
- Live updates: Democrats seize on volatility of Trump trade policies - The Washington Post - April 10th, 2025 [April 10th, 2025]
- The middle is disappearing: Why three dealmaking Senate Democrats are heading for the exits - CNN - April 10th, 2025 [April 10th, 2025]
- Democrats problem isnt just messaging its the electoral math | David Daley - The Guardian - April 10th, 2025 [April 10th, 2025]
- The House: Democrats Favored on What Starts as a Small Battlefield - Sabato's Crystal Ball - Center For Politics - April 10th, 2025 [April 10th, 2025]
- Four Democrats join Republicans to pass SAVE Act bill that requires proof of citizenship to vote - The Independent - April 10th, 2025 [April 10th, 2025]
- Democrats running for California governor take digs at Kamala Harris' delayed decision on the race - Los Angeles Times - April 10th, 2025 [April 10th, 2025]
- Democrats Grill Officials on Insider Profits From Trumps Tariff Reversal - Mother Jones - April 10th, 2025 [April 10th, 2025]
- The Early Signs These Democrats Are Running For President in 2028 - The Daily Beast - April 10th, 2025 [April 10th, 2025]
- House Republicans and Democrats say the US must maintain its troop totals in Europe - AP News - April 10th, 2025 [April 10th, 2025]
- Democrats look to force Republicans to choose between backing Trump or lessening tariff pain - CNN - April 10th, 2025 [April 10th, 2025]
- The Democrats Wont Acknowledge the Scale of Trumps Tariff Mess - The Atlantic - April 10th, 2025 [April 10th, 2025]
- Democrats reveal their top targets to flip in 2026 - Politico - April 10th, 2025 [April 10th, 2025]
- Opinion | Democrats Can Be the Party That Wants to Make Americans Rich - The New York Times - April 10th, 2025 [April 10th, 2025]
- Virginia elections will test the backlash against Musk and Democrats are ready with a plan - The Guardian - April 10th, 2025 [April 10th, 2025]
- Democrats wrestle with how hard to swing away from tariffs - Semafor - April 10th, 2025 [April 10th, 2025]
- With protests and action, Democrats just had their best week since Election Day - MSNBC News - April 10th, 2025 [April 10th, 2025]
- Opinion | Another Group the Democrats Should Stop Taking for Granted - The New York Times - April 10th, 2025 [April 10th, 2025]
- Democrats Shouting 'Insider Trading!' After Trump's Tariff Pivot Need To Sit This One Out For Obvious Reasons - OutKick - April 10th, 2025 [April 10th, 2025]
- Democrats Had a Messaging Problem. Trump Just Solved It for Them. - New York Magazine - April 10th, 2025 [April 10th, 2025]
- Banking Democrats Call on Chairman Scott to Hold Hearing on Trumps Disastrous Use of Emergency Powers to Impose Tariffs and Cause Chaos for American... - April 10th, 2025 [April 10th, 2025]
- Democrats look to make a play for GOP turf with surge of new candidates - Politico - April 10th, 2025 [April 10th, 2025]
- AIPAC attacks Democrats who voted to stop arms sales to Israel - The Forward - April 10th, 2025 [April 10th, 2025]
- Elon Musk Helped Democrats Get Their Act Together, But What If He Goes Away? - HuffPost - April 10th, 2025 [April 10th, 2025]
- Oregon Democrats unveil ambitious road funding proposal. Now the haggling begins - Oregon Public Broadcasting - OPB - April 10th, 2025 [April 10th, 2025]
- Bernie Sanders is drawing record crowds as he pushes Democrats to 'fight oligarchy' - NPR - March 22nd, 2025 [March 22nd, 2025]
- The Democrats' 10 theories driving the party's crisis - Axios - March 22nd, 2025 [March 22nd, 2025]
- Democrats Are Taking Their Anger Out on Chuck Schumer - The Wall Street Journal - March 22nd, 2025 [March 22nd, 2025]
- Column | Democrats confront the wrath of their voters, just as Republicans have - The Washington Post - March 22nd, 2025 [March 22nd, 2025]
- We Dug Into the Polls. Democrats in Congress Should Be Very Afraid. - POLITICO - March 22nd, 2025 [March 22nd, 2025]
- Democrats US tour gathers support in fight against Trump: Get angry, man - The Guardian US - March 22nd, 2025 [March 22nd, 2025]
- The Democrats Are Losing the Social Media Wars. This Young Socialist Is Changing That. - POLITICO - March 22nd, 2025 [March 22nd, 2025]
- Democrats clashed over their shutdown strategy. But the party's identity crisis runs far deeper - The Associated Press - March 22nd, 2025 [March 22nd, 2025]
- Harris dominates in new poll on who Democrats would back in 2028 - with AOC in third - The Independent - March 22nd, 2025 [March 22nd, 2025]
- With Democrats in disarray and Trump on the attack, many ask what is the way forward - Colorado Public Radio - March 22nd, 2025 [March 22nd, 2025]
- They hate us: Democrats now fear midterms could result in their ouster as voters want candidates to take on Trump - Yahoo - March 22nd, 2025 [March 22nd, 2025]
- Opinion | The Last Thing Democrats Need Is Their Own Tea Party - The New York Times - March 22nd, 2025 [March 22nd, 2025]
- Democrats feel the heat at town halls, too: From the Politics Desk - NBC News - March 22nd, 2025 [March 22nd, 2025]
- I wish youd be angry. California Democrats face voter fury over Trump, Elon Musk - Los Angeles Times - March 22nd, 2025 [March 22nd, 2025]
- The spending bill fight split Democrats. 2 strategists offer takes on party's future - NPR - March 22nd, 2025 [March 22nd, 2025]
- Amid Schumer Backlash, Heres Whos Vying to Lead Democrats - TIME - March 22nd, 2025 [March 22nd, 2025]
- Politics have changed but the Democrats havent they are old and out of touch | Moira Donegan - The Guardian - March 22nd, 2025 [March 22nd, 2025]
- Democrats are desperately searching for new leaders. AOC is stepping into the void. - NBC News - March 22nd, 2025 [March 22nd, 2025]
- California Democrats are in control. So why are they worried? - POLITICO - March 22nd, 2025 [March 22nd, 2025]
- Tamara Keith and Amy Walter on Democrats clashing over how to govern in the minority - PBS NewsHour - March 22nd, 2025 [March 22nd, 2025]
- Democrats Internal Battle Isnt Over Ideology, but How Hard to Fight Trump - The New York Times - March 22nd, 2025 [March 22nd, 2025]
- White House political chief warns the GOP: Democrats are running angry - POLITICO - March 22nd, 2025 [March 22nd, 2025]
- 'We have questions': Mass. residents flood congressional Democrats' town halls, calling for action - WBUR News - March 22nd, 2025 [March 22nd, 2025]
- Bill Maher warns that Democrats are 'gonna be the Whigs' if they don't fix this big problem - Yahoo News - March 22nd, 2025 [March 22nd, 2025]
- Democrats are failing to meet the moment amid Trumps unconstitutional power grab - MSNBC - March 22nd, 2025 [March 22nd, 2025]
- Democrats host town hall meetings in GOP districts throughout the Tampa Bay area - WFLA - March 22nd, 2025 [March 22nd, 2025]
- Democrats are angry, disillusioned over failure to stand up to Trump and Musk - The Washington Post - March 22nd, 2025 [March 22nd, 2025]
- Trump appeals rulings that blocked his firings of Democrats on independent federal boards - Government Executive - March 22nd, 2025 [March 22nd, 2025]
- Video: Opinion | Democrats Need to Face Why Trump Won - The New York Times - March 22nd, 2025 [March 22nd, 2025]
- Democrats are reeling. Is Stephen A Smith the way back to the White House? - The Guardian US - March 9th, 2025 [March 9th, 2025]
- Democrats Turn to Sports Radio and Podcasts to Try to Reach Young Men - The New York Times - March 9th, 2025 [March 9th, 2025]
- Progressive activists have an agenda for resisting Trump. Will Democrats follow it? - USA TODAY - March 9th, 2025 [March 9th, 2025]
- Walz, reflecting on 2024 race, says Democrats played it too safe - The Washington Post - March 9th, 2025 [March 9th, 2025]
- The 10 Democrats who voted to censure Rep. Al Green are misreading the moment - MSNBC - March 9th, 2025 [March 9th, 2025]
- House Republicans unveil bill to avoid shutdown and they're daring Democrats to oppose it - CNBC - March 9th, 2025 [March 9th, 2025]
- I was dumbfounded by Democrats' response to Trump's speech. They are in denial. | Opinion - Detroit Free Press - March 9th, 2025 [March 9th, 2025]
- House Republicans unveil bill to avoid shutdown and theyre daring Democrats to oppose it - The Associated Press - March 9th, 2025 [March 9th, 2025]
- Can democrats find their way out of the wilderness? - NPR - March 9th, 2025 [March 9th, 2025]