Connecticut CSE: No Tax Increases!

On Tuesday, Connecticut Governor John Rowland vetoed an interim budget proposed by state Senate and House Democrats. The spending plan would have cost the state $27.7 billion, creating a $1 billion budget gap. The solution from state legislators was to raise taxes, and the proposal included a $447 million tax hike. The plan would also raise taxes on business profits and license fees. Citizens for a Sound Economy supports the governor’s decision to reject the tax increase.

Still, while Governor Rowland is advocating spending caps, his policies are still not fiscally sound. He plans on spending all $250 million in federal aid this year instead of building a rainy day fund or cutting taxes. Most troubling, Rowland has also admitted that he is willing to raise taxes.

CSE President Paul Beckner made the following remarks:

“The Connecticut government has been financially irresponsible for too long. For example, personnel costs take up 25 percent of the budget, and the average wage for unionized state employees is the fourth highest in the nation.”

“These tax hikes will hurt the Connecticut economy and working families. The state government needs to cut spending and leave more money in the hands of taxpayers.”