Candelora Votes Against Record Tax Hikes

State Representative Vincent J. Candelora voted against a controversial two-year state proposal by Governor Malloy and majority Democrats built on questionable revenue schemes, increased government spending and middle class tax hikes that threaten Connecticut’s fragile economic recovery. The proposal also contains a $2 billion hole of assumed union concessions, yet to be agreed upon by state employee unions.

Majority Democrats pushed their $40 billion budget pact with Gov. Dannel Malloy through the House in a 83 to 67 vote. The Democratic package narrowly passed the state Senate in 19 to 17 vote early Tuesday morning with bipartisan support against the unpopular state budget package. The controversial budget now awaits signature from Malloy—the architect of the largest tax increase— about $2.09 billion in the first year alone—in state history.

“Democrats in the legislature and Governor Malloy missed an opportunity to fundamentally restructure or state government. By listening to the institutions that are serviced within this building, they’ve forgotten the interests of those who have sent them here; constituents and the every-day person. Instead of scaling back, much like most of us are already doing, the majority party has once again ramped up state government in size, spending and taxation,” said Candelora.

The tax hikes include a retroactive tax hike for middle class wage earners as well as a sales tax hike that will make goods and services with already-increasing prices even more expensive. Taxes also include everything from non-prescription drugs to concert tickets and have stripped the tax-free exemption for clothing and shoes under $50.

The budget also slashes the $500 property tax exemption by 40 percent for Connecticut homeowners. “This is about everyday life. As inflation decreases buying power, the federal government is asking for more, energy prices are skyrocketing, gasoline is through the roof and all of these drive up the price of food and the overall cost of living, this tax package on our every day lives hits Connecticut residents hard. Sadly, it will be those on fixed incomes such as Social Security or unemployment that will suffer most,” said Candelora.

Candelora was particularly concerned about the controversial tax increase on job providers.

“Connecticut’s unemployment rate is higher than the national average at just over 9 percent. As a state, we must remain competitive. I’m a small business owner and I know how difficult it is to do business in the state,” said Candelora. "At a time when headlines tell us several of Connecticut’s large employers losing or moving jobs out of state-- such as Pfizer moving over 1,000 Connecticut jobs to Massachusetts, a software company AmkaiSolutions moving jobs to New York, it’s hard to reconcile why Governor Malloy and state Democrats want to double the current corporate tax rate from 10 percent to 20 percent. I don’t understand why we would want to punish or hinder those creating or maintaining in-state jobs. Let’s encourage job providers to call our state home, not penalize them."

The state budget proposal relied on revenue estimates to balance the budget that the state’s top tax collector warned won’t work. Candelora also pointed out that the Governor and Democrats in the legislature, took a gamble in approving their budget before securing $2 billion in state worker union concessions. The concessions are necessary to keep their biennium budget in the black, but have not been agreed upon by unions.  

“The Governor’s own Revenue Services Commissioner has already said that the so-called Amazon Internet Tax is ‘uncollectable’’ and that taxes on plastic surgery would also not be workable. Not to mention the $2 billion ‘maybe’ in concessions. I fear this budget is already out of balance before we even vote on it and we will soon find ourselves back in this very chamber voting on a deficit mitigation package before the end of the biennium,” said Candelora.

Prior to the vote on the Democratic package, Republican’s offered an alternative “no tax increase” budget on the floor. This proposal rolled back government spending and size to levels in prior budget years and closed the deficit with zero tax increases, fully funding municipal and education aid, and preserving the social safety net for those in need. The Republican proposal spent $900 million less than the plan approved Wednesday by House Democrats.

Among the steps Republicans used for savings in their “no tax increase” budget:

• Enhanced Medicaid fraud detection units will save roughly $224 million in wrongful payments.
• Republicans plan to save more than $46 million through agency consolidations.
• State government will be streamlined through attrition and reduction in the 54,000- state payroll.
• No money will be borrowed for day-to-day state operations.
• More than $200 million in the state’s highest cost debt will be pre-paid, thus allowing for greater flexibility in budgeting throughout state agencies.

“I attended several town hall meetings leading up to this vote. Governor Malloy promised taxes were supposed to be a last resort, yet raises taxes in the budget by multi-billions. He also said ‘Connecticut is open for business’ yet doubled the taxes on our major job providers. I am proud to say that Republicans proved there is an alternative way. With some hard work we found efficiencies, we balanced the budget without any raising taxes. No one at my town halls asked for their taxes to be increased. I listened and worked with a team to create a no tax increase budget. However, this Governor and the majority party—much like they did to taxpayers across the state—turned a deaf ear,” said Candelora.

Candelora represents East Haven, North Branford and Wallingford in the General Assembly.

Press release courtesy of S.Treadwell, Press Secretary, Connecticut General Assembly