The Harford Courant is reporting that Gov. Rell has reversed her stance on the budget from February: “… Rell would raise the state income tax to 6.5 percent on couples earning more than $1 million per year and individuals earning more than $500,000 per year. The current maximum rate is 5 percent.”
The tax increase, retroactive to Jan. 1,2009, is expected to hall in more than $1 billion in the next two years. In addition, the sales tax would be cut a half a percent to 5.5 percent.
Pointing to a survey, Rell expects the cut in the sales tax to produce 8,300 jobs.
There is no indication at present that the Democrats, who have promised to produce their own budget, will agree to any of these terms. What the new plan really does is to cut no-tax-increase Republicans out of the negotiation loop.