FOR IMMEDIATE RELEASE: March 26, 2009
The day after a rally outside the State Capitol in Hartford with over a thousand Connecticut residents in support of the Better Choices for Connecticut revenue plan to close the budget gap, the call for progressive taxation has been heard by state legislators – in Albany, New York.
Tonight, New York State’s legislature and Governor have reached a tentative deal to raise income taxes on the state’s top earners as a way to help balance the state’s budget.
“Raising income taxes on high income earners is the best way to protect vital public services like education and healthcare, without further damaging the economy” said Douglas Hall, of Connecticut Voices for Children, a member group of Better Choices for Connecticut. “We congratulate New York for taking this smart step to stave off the worst of the cuts.”
The deal would create three new brackets: 7.97% percent on income from $300,000 to $500,000, 8.47% on income from $500,000 to $1 million and 8.97% on income over $1 million. The current top tax rate in New York state is 6.5% on income over $40,000, already significantly higher than Connecticut’s 5%.
Better Choices for Connecticut announced its revenue plan last month. The largest share of new revenue in the "Better Choices" tax plan comes from raising income taxes on the state's wealthiest residents making over $200,000 per year and on closing corporate tax loopholes. The proposal also includes a penny increase in the sales tax, reduced subsidies to the entertainment industry and higher taxes on alcohol and tobacco. The plan also includes a new small business property tax credit and a state earned income tax credit.
A poll released by the State Employees Bargaining Agent Coalition (SEBAC) indicates broad support for this idea: a strong majority of 54% support increasing taxes on the wealthy and large corporations as opposed to large cuts to public services (19%) and laying off public employees (15%) as a solution to the budget crisis. Further, the poll indicates 78% support (47% strong) for raising taxes on those making over $200,000 year and 83% support (57% strong) for closing corporate tax loopholes.
Better Choices for Connecticut is a community coalition working to help Connecticut make better choices on ways to improve the state’s imbalanced revenue system so that it advances opportunity for shared prosperity for all Connecticut residents; preserves services for children, families and the elderly; creates and sustains good jobs; and reinvests in the middle class and our communities.
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