The Tax Foundation has chimed in on the Malloy budget proposals today, calling them a “move toward sound tax policy.”
Here are the last two paragraphs:
“The governor’s budget raises revenue in many different ways. It increases taxes both by increasing rates and by broadening the sales tax base. While it may not be much consolation to Connecticut residents, some of the base broadening would lead to a more comprehensive and neutral sales tax base-a move toward sound tax policy. At the same time, other provisions simply attempt to raise revenue in politically safe but economically dubious ways, as in the cases of the tax increases on cigarettes, alcohol, luxury goods, and goods purchased with coupons.
The tax increases in Malloy’s budget would amount to more than $400 per Connecticut resident. In 2009, Connecticut received over $4 billion in federal grants and loans as part of the one-time stimulus package. Two years later, the state is still facing a $3.2 billion budget gap, even though Connecticut residents are the third-highest taxed in the nation. [5] For taxpayers who already face such a high tax burden, an increase of more than $400 per person will probably not be welcome.”
You can read the full report:
http://www.taxfoundation.org/publications/show/27117.html