Rep. Hwang Opposes Largest Tax Increase in Connecticut History

State Representative Tony Hwang (R-134) yesterday stood in opposition to another budget proposal which was unveiled today by legislative majority Democrats, again resulting in the largest proposed tax hike in state history. Hwang opposed the measure before the Appropriations Committee on July 30th in a meeting at the Legislative Office Building in Hartford.

Hwang noted that the legislative session ended two months ago, and that the fiscal year had ended last month with no budget being acted on by the legislature. Governor Rell and legislative Republicans called for making all possible cuts to state spending before enacting tax increases. Following six months of fruitless budget negotiations where the Democratic majority leadership refused to make significant cuts or give up on massive tax increases, Governor Rell announced that she would reluctantly agree to some tax increases to move the process forward.

“I understand the dilemma Governor Rell is in,” said Rep. Hwang. “Democrats in the legislature have simply been unwilling to consider significant cuts. There is a veto-proof majority of tax-increase advocates in the legislature, so she has little recourse. However, I do not believe that tax increases during these rough economic times is a good idea. It only serves to hurt the people who are already hurting the most, your neighbors and mine.”

The Democratic proposal raises taxes by $1.85 billion including a huge increase in the income tax, and a hefty new tax on businesses that will likely lead to more job losses in the state.

Hwang also noted that the Democratic plan relies on billions of “one shot’’ revenues such as the $1.4 billion Rainy Day Fund, $3 billion in federal stimulus money and “securitization’’ of $835 million in unspecified state assets that have to be replaced within two to three years. Hwang said that the state will have to raise taxes on more taxpayers to cover a projected $5 billion deficit in the future, and would have to borrow to cover the immediate shortfall for last year’s budget caused by the delay and inefficiency of the Democratic majority leadership.

The revised Democratic plan also includes a new 15 percent surcharge on all business profits, a 75 cent increase on cigarettes and a 30 percent surcharge on estate settlements.

“I think this Democratic majority leadership budget takes the easy way out,” said Rep. Hwang. “There is no effort here to make structural changes to the state’s spending habits, and no consideration given to the potential loss of jobs in a state that has already hemorrhaged 65,000 jobs during this recession. In addition we will be committing future generations to bail us out of the problems we are in today which will lower the quality of living for them.”

Hwang joined House Republicans which twice proposed No-Tax-Increase budgets that are balanced and spend nearly $1 billion less than the Democrats’ latest version. Hwang expressed frustration that diligent debate and consideration of those budget proposals still has not occurred in Appropriation Committee and General Assembly sessions. “The people of Connecticut deserve a more transparent and sincere effort to resolve our financial budget crisis,” he noted.