Rell and Dems Agree on Higher Cig Taxes, But That's About It

Both sides unveil their new budget proposals

By Amy Wrubel and Tom Monahan
|  Thursday, Jul 30, 2009  |  Updated 6:01 PM EST
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Rell and Dems Agree on Higher Cig Taxes, But That's About It

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A 75 cent tax increase on cigarettes is one thing the governor and democrats see eye to eye on.

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On Thursday, both the Democrats and the governor released plans for how to spend the state’s budget in order to deal with the state's mounting debt.

The Democratic plan reduces spending amounts and scales back their proposed tax increase to a figure of about $1.8 million.

Meanwhile, Governor M. Jodi Rell, who had said she was opposed to raising taxes, says she thinks there's no other choice.  Her plan would increase taxes by $433 million.

The Democrats' plan includes a six percent tax on families making more than $500,000, a 6.5 percent tax on those making $600,000 or more and a 7 percent tax on families making $750,000 or more.  The Democratic plan also raises the corporation tax to 8.625 percent.

Rell’s plan also includes a 10 percent corporate surcharge and an increase in the alcohol tax. 

One of the few issues the two sides have agreed on is to raise the cigarette tax by 75 cents.

The next, and most important step, is for them to bridge the enormous divide and agree on the final state budget.  In the meantime, the Governor has prepared an executive order to keep the state functioning through the month of August.

Posted Thursday, Jul 30, 2009 - 3:55 PM EST
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