HARTFORD, Conn. – Republicans reacted with skepticism Monday to Gov. Dannel P. Malloy’s plan to cancel a scheduled tax break on clothing under $50 in order to pay for an overall reduction in the sales tax rate.
The policy will be included in the two-year budget the governor presents to the legislature on Wednesday. Malloy wants to reduce the tax rate from 6.35 percent to 6.2 percent in November and reduce it again to 5.95 percent the following year.
Malloy, who is facing budget deficit projections of $1.3 billion in 2016 and $1.4 billion in 2017, is also seeking to cancel the tax exemption for clothing as well as other — so far unspecified — exemptions. The plan will increase tax revenues during the first year by $68 million but decrease them by $12 million the year after.
See the complete story at CT News Junkie.
Leave a Reply
You must Register or Login to post a comment.