In an attempt to make a dent in Connecticut's project $8 billion deficit over the next three years, the state Legislature's Finance Committee Monday proposed several changes in the state's tax laws.
Under the plan put forth by the Democratic majority on the committee, there would be a two-year moratorium on business tax credits, the sales tax would be expanded to goods and services previously exempt from that tax; and, there would be an increase in fees and fines.
The committee held a public hearing Monday with small business owners speaking out against the proposal. They said most of these businesses are barely getting by as it is, and that if these proposals are adopted, many will have to shut their doors.
Senator Andrew McDonald (D) of Stamford, a members of the committee, said there's no way the state can balance its budget over the next three years without enacting these proposals.
He said he would expect Governor Rell to veto the bills which are expected to pas the House and Senate. Beyond that, he said, there's no game plan, except to say that it would throw the entire budget-balancing process into chaos.
