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Malloy’s decision to coddle the rich = State Budget Deficit

by Jon Pelto from Wait, What

When Governor Malloy proposed his $1.5 billion tax increase last year, anyone making over $1 million dollars was spared any increase in the state income tax rate.

Concerned that the super-rich in Fairfield County might leave Connecticut – despite the fact that the income tax rate is higher in New York and New Jersey – and much higher in New York City – Malloy’s tax package only increased the income tax rate on people making LESS THAN $1 million.

In addition, he made it clear to the Democratic Legislature that he would not sign any tax package that included a higher rate on millionaires.

So while the Bush (and Obama) Tax Cuts give Connecticut’s super-rich an extra $156,000 in income tax breaks each year – these people saw no increase in their state income tax rate – while the rest of us did.

The amount lost to this give away to the rich – about $350 million. This year’s projected budget deficit – about $350 million.

So Connecticut, get ready for Governor Malloy to announce more budget cuts this week.

On top of which, despite a huge revenue shortfall for next year, the Governor announced last week that he was ruling out any tax increase on these millionaires for coming year.

Oh it’s good to be in rich…