Haircuts, car washes, manicures, pet grooming, cosmetic surgery are all currently tax-free in Connecticut, but that would change under Gov. Dannel Malloy's budget plan.
"I think these are serious tax increases that will impact Connecticut residents, there's no question about that," Ben Barnes, Secretary of the Office of Policy and Management, said on Monday during a news conference at the State Capitol.
The budget proposal calls for what top advisors describe as a "progressive" raise in the income tax.
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Instead of three tax brackets, the state would have eight and middle and upper class families would pay anywhere from 5 percent to 6.70 percent.
"The middle class is being asked to do a little bit more and the governor is aware of that," senior Malloy advisor, Roy Occhiogrosso, said.
The sales tax would go from 6 percent to 6.25 percent overall, with a rate of 6.35 percent at certain stores, with that extra .10 percent going back to municipalities.
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Sales tax exemption week would be eliminated and a 3 percent luxury goods tax would be created.
A fuel tax increase would add 3 cents per gallon at the gas pump.
Alcohol taxes would go up and the cigarette tax would go from $3 to $3.40 per pack.
Connecticut Republican Party Chairman Chris Healy called the plan, "St. Valentine's Day massacre for taxpayers."
"The Democrats, Governor Malloy have put taxpayers up against the wall and asked them to empty their pockets," Healy said.
The proposal repeals many of the current sales tax exemptions, including those for yoga studios and boat services, The governor's top advisor called the exemptions unfair anyway.
"What you're seeing there is a return to some sense of fairness in the tax code," Occhiogrosso said.
"Only a Democrat would say an exemption is a privilege. The fact that they are taxing anything that moves shows that they can't get their hands around a simple fact -- that the government spends too much," Healy countered.
In all, the governor's proposed tax increases total $1.5 billion and are only part of the budget.
"There are close to $2 billion in spending cuts. There is savings in state government of close to $1 billion. The governor didn't allow any discussion of the revenue package to even occur until after spending had been addressed," Healy said.
Details of the spending cuts will not be revealed until the governor's budget address on Wednesday.
All the tax increases require approval from the Democratic-controlled legislature.
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