During an interview with reporters earlier today, state Senate President Donald Williams, D-Brooklyn, was asked for details about the income tax increases his party is pursuing in the legislature as part of its two-year budget package.
Earlier in the spring Democratic leaders proposed a spending plan that included income tax hikes on households earning $250,000 – something that did not go over well with some of the rank-and-file who represent wealthier districts in Fairfield County and elsewhere.
“We’re looking at something closer to the ‘millionaires’ tax’,” Williams said, meaning a starting household income closer to $1 million.
Sen. Gayle Slossberg, D-Milford, one of the Democrats who opposed the earlier income tax plan, in a separate interview said there have been discussions about moving the income threshold to at least $500,000.
“There’s no tax increase that’s going to be easier for me to vote for but at least that’s movement in the right direction,” Slossberg said.
Sen. Minority Leader John McKinney, R-Fairfield, wanted additional details but said “I don’t see our caucus being willing to talk about tax increases until we’re convinced we’ve made every savings cut and efficiency possible.”
Republican Gov. M. Jodi Rell has argued Connecticut has an opportunity by keeping taxes down to attract residents and businesses from neighboring states. Sen. Majority Leader Martin Looney, D-New Haven recently told The Advocate he agrees, but there is still room for lawmakers to hike Connecticut’s income tax on higher earners and keep it below that of surrounding states.
McKinney disagreed.
“Staying ‘slightly below’ is not enough incentive” for residents and businesses to leave New York, New Jersey, Rhode Island and Massachusetts for Connecticut, he said, adding state legislators should also be wary of wealthy taxpayers fleeing to warmer climes for less taxes and a lower cost of living.
