March 17, 2010
At a news conference today, Better for Choices for Connecticut released a report outlining several options to modernize Connecticut’s revenue system while closing our state’s massive budget deficit. The Better Choices coalition, made up of nonprofit providers, public service workers, and community and advocacy organizations, pressed legislators to adopt the measures to protect families in this devastating national recession, and maintain vital public services— including education, health, public safety, environmental protection, and transportation systems—when families are needing them most.
Increasing revenue, according to the Better Choices report, would align Connecticut with 30 other states that have acted in the last year to increase state revenues to not only keep pace with the growing need for public services, but to position themselves for future growth and sustainability when better economic conditions return. Notably, citizens in Oregon themselves voted to raise personal income taxes on higher-income households in order to maintain the state’s quality of life.
The menu of revenue options advocated by Better Choices for Connecticut includes proposals to:
- Close corporate tax loopholes that benefit multi-state companies over local companies;
- Evaluate the $5 billion in tax breaks in state tax laws and reduce or eliminate unproductive tax breaks;
- Increase income taxes for those who can best afford it, the state’s wealthy residents;
- Delay reductions in the gift and estate tax, a tax that affects only a handful of the state’s wealthiest residents;
- Either increase the sales tax or modernize it to cover services rather than only goods;
- Raise taxes on unhealthy products such as soda;
- Restore the scheduled Petroleum Gross Earnings Tax rate increase; and
- Tax excess profits of electricity generators.