Dozens of business owners and their associations voiced concerns and frustrations about the Democrats' proposed $2 billion in tax increases to GOP members of the General Assembly on Monday.
House and Senate Republican leaders called the meeting last week as a way for Connecticut residents to publicize their feelings about the proposal.
Paul Miller, who owns a dairy farm in Woodstock, said proposed sales taxes on veterinary services could mean much more out of his pocket and hurt his bottom line.
"This is a fee that we can’t recover by adding to the price of milk," Miller said.
He said veterinarians come to his farm to check on his cattle as many as three times per week, and they charge by the hour.
"We’re budgeted for about $5,000 a month in veterinary fees so that’s going to run roughly $300 per month in additional sales tax or service fees. While it doesn’t sound like a lot, over the course of a year it adds up," Miller explained.
Democrats proposed expanding the services that impose sales taxes.
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"Connecticut is already losing businesses and this will cause more to leave," said interior designer Lisa Davenport.
She describes charging sales taxes as a way to take money out of the pockets of residents who would otherwise use the money on her services. Davenport also said businesses like hers that are active in communities won't have money to spend there.
"We’re where the kids go for their little league sponsorships and where they go for the Girl Scout events and where the schools go for help," Davenport said.
House Speaker Brendan Sharkey said during an interview last week that the tax package is mainly aimed at raising revenues from Connecticut's wealthy residents. He and other top Democrats have said the package that includes property tax relief will "restructure" Connecticut's tax system.
"This is the day that we’re actually going to change this by asking billionaires and millionaires to do a little bit more but predominantly give relief to working families in the state," he said.
Senate Bill 1 would create a statewide mill rate that would lead to decreased payments in car taxes totaling hundreds of dollars for many Connecticut residents. With that in mind, Sharkey warned against looking at sales tax increases as the be-all-end-all for dealing with the budget.
"There will be sales tax imposed on some things that aren’t currently but compared to the savings that you’re going to get by your car tax dropping by hundreds of dollars per year, in most cases, that’s a trade off I think most tax payers will understand and accept," Sharkey said.
When asked about the proposed budget with the tax hikes, Gov. Dannel Malloy backed off the possibility of a veto threat.
"I don’t need to threaten to veto things. That sometimes can be viewed a little incendiary, especially when you’re talking about something so big and important as the budget," he said.
The governor maintains that his proposal to cut spending for programs like mental health, autism and care for the elderly are better ideas than tax hikes.
"This is not the time to reverse our path or our trajectory, so I think hard decisions are going to have to be made, but somehow we’re going to find a way to make them," he said.
The deadline for the legislature to pass a budget and avoid a special session is June 3.
