By Mark Pazniokas
Legislative leaders struck a tax deal with the administration of Gov. Dannel P. Malloy moments before midnight Saturday, setting the stage for action Monday on a biennium budget that would raise taxes on the wealthy and business.
The income tax would increase to 6.99 percent on households earning $1 million, but a proposed surcharge on capital gains was discarded. A legislative plan to extend the sales tax to a wide array of business services was largely shelved, but the tax on data-processing services would triple to three percent.
The total sales tax would remain at 6.35 percent, but a half-percent would be dedicated to the governor’s transportation infrastructure program and a half-percent would be used for a property-tax relief program championed by legislative leaders.
The Connecticut Lottery would be authorized to offer keno, an electronic drawing game in restaurants, bars and some retail outlets.
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