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NewsPolitics

Thursday, December 06, 2012

Are State Tax Increases Really Out of the Question ?

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By Keith M. Phaneuf

www.ctmirror.org

With the governor trying to discourage talk of a tax increase while red ink projections for the next state budget continue to grow, some at the Capitol are testing the definition of a tax hike.

More specifically, if a temporary tax increase is supposed to expire next year, is extending that rate a little longer an honest-to-Hoyle’s tax hike, or a legitimate loophole?

That question has Connecticut corporations and electricity generators in the fiscal crosshairs as officials grapple with a projected revenue shortfall of as much as $1.2 billion in the 2013-14 budget.

“I don’t think that [tax increases] are off the table,” Sen. Toni Harp, D-New New Haven, co-chairwoman of the Appropriations Committee, said following a budget briefing last week. “Things do not have to expire. Continuing them is not a new tax.”

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Posted 12/06 at 10:02 PM

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