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Republican Party Ditched By Governor

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.

Comments

David Moelling said…
I'm afraid Jodi (along with many others in CT) still doesn't get it. There is a real potential for the Northeast to turn into a mini rust belt (see Maine for an example). Finance and Defense helped support bloated budgets but with both industries down (and under attack by Obama) it will be very difficult in the future.

THe myth that people in the NE will not relocate is wearing thin. The most highly compensated people will relocate leaving little to tax. Atlas may not shrug, but will call the moving van.
Anonymous said…
Dave also if obamacare passes the health insurance industry will be destroyed, guess what that does to Hartford and the Ct tax base. Can you say mini-Detroit.

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