That was the response of one Democratic staffer after learning that Republican Gov. M. Jodi Rell had only offered around $391 million worth of new taxes in the third two-year budget proposal she put on the table today.
Rell generated some headlines over the past few days when she told reporters after trying to hold the line on taxes in her previous two spending plans, she would include some “revenues” in this latest one.
The Democrats’ continue to focus on the wealthy with increases in the income and estate or “death” taxes totalling nearly $1.8 billon. Rell today said she was having none of it … at least for now.
She chose instead to raise taxes on cigarettes (also in the Dem’s plan) and alcohol – the so-called sin taxes – and a three year surcharge on the corporation tax.
“I chose the taxes I thought the people of Connecticut would be least offended by,” Rell said.
Several reporters attempted to pin Rell down on why she opposes raising income taxes on the wealthy but she refused to give a detailed explanation.
But she also left the door ever so slightly cracked for the possibility she might end up agreeing to a budget that includes an income tax hike.
At the start of her press conference Rell, referring to the Democrats’ latest plan – also their third budget offering – said “I will not support that and I will not sign it into law.”
Later I asked her to specify – was she referring solely to today’s Democratic proposal or refusing to support any income tax increase? She said the former.
Afterward Joseph Brennan, senior vice president of public policy for the Connecticut Business and Industry Association, said he was pleased proposals for the corporate tax surcharge have been decreasing in size.
And Brennan said despite Connecticut’s history of passing taxes that are supposed to sunset but are instead renewed year after year after year, there is past precedent for such surcharges to go away.
“They have been phased out. Maybe they haven’t always been phased out on time, but they have been phased out,” Brennan said.
Still, Brennan said, CBIA’s preference would be for lawmakers to find more cuts before raising taxes.
Speaking of cuts, Rell used the opportunity of the press conference to elaborate on yesterday’s comment to the capitol press corps that she believes she has “exhausted the cuts” and must raise some taxes.
What she meant, Rell told reporters, is that she is willing to cut more but the legislature’s Democratic-majority will never allow it.
“I could cut more but they cannot,” Rell.
Senate Democrats responded with a press release entitled “Governor Rell taxes the six pack, not the six-figure salary.”
