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Gov. Malloy Says No New Taxes Despite Deficit

The state's budget deficit is now projected to top $1 billion but Gov. Dannel P. Malloy has vowed he won't hike taxes again to close the budget gap.

 

Despite a growing budget shortfall that is expected to hit $1.1 billion in the next fiscal year, Gov. Dannel P. Malloy is vowing that he won't increase taxes again. Malloy last year hiked state taxes by an historic $1.5 billion to help balance the state budget.

Combined with the current year's budget gap of $365 million and the additional shortfall of about $1 billion expected in the 2013-2014 fiscal year, Malloy and state lawmakers are facing deficits of more than $2.5 billion when they meet in early 2013 to craft a new two-year budget, according to the Connecticut Mirror.

Malloy, however, said this week that the shortfalls will not require additional tax hikes. In a press conference following the release of the new budget figures, Malloy said the state fiscal problems are the result of weak economic factors nationwide and that no new taxes would be needed to close the budget gap.

Alethiologist November 26, 2012 at 07:53 PM
Although Obama and his fellow Democrats repeatedly call on wealthier Americans to pay their "fair share," they never specify what percentage of the nation's tax burden the wealthy would have to bear. As matters stand, the top 1 percent of American households paid 39 percent of income taxes in 2009, according to the most recent data compiled by the CBO, and the top 5 percent of taxpayers paid 64 percent. But income taxes, taken in isolation, do not tell the whole story, because lower-income Americans do pay payroll taxes. But even taking into account all forms of taxation, the top 1 percent still paid 22 percent of federal taxes while earning just 13.4 percent of household income. The top 5 percent paid 40 percent of all federal taxes, despite earning only 26 percent of all income. It's hard to understand why anyone would think the wealthy aren't already shouldering a burden commensurate with their blessings. Obama will keep repeating this "fair share" mantra as part of his call to raise taxes on those earning more than $250,000 per year. He also wants to close additional loopholes and limit deductions to increase their tax burden further. On top of whatever new taxes go into effect in the deal to avert the fiscal cliff, there will be additional new taxes due to Obamacare. These include a 0.9 percent Medicare tax hike for individuals earning more than $200,000 per year and couples earning more than $250,000 as well as a 3.8 percent surtax on investment income.
Kelley Anne November 26, 2012 at 08:32 PM
Obama won, you lost, he gets to make the rules! End of story!
Hermann Zwergel November 26, 2012 at 08:42 PM
How about this GOP guy? In a move that will surely rankle his fellow Republicans, Joe Scarborough criticized the GOP's tax policies and argued that wealthy Americans should pay more taxes on Monday's "Morning Joe." The panel was discussing tax reform and Steve Rattner's New York Times editorial, which suggested that President Obama should raise the tax rate on capital gains to 28%. Scarborough jumped in, arguing that the richest Americans can and should pay higher taxes. "You see again this huge divide between the richest Americans and the poorest Americans... and you sit there going, you know what, these people that live in these mansions and have private jets and live an extraordinary life like few Americans live — they can probably deal with a 20 percent tax rate on capital gains instead of 15 percent," the MSNBC host said. Scarborough further criticized, "Why are we fighting and risking our majorities protecting billionaires that are hedge fund guys who are paying 14 percent tax rates?"
Alethiologist November 26, 2012 at 09:06 PM
Why? Simply because I believe they will quickly spendd whatever they get in new taxes on the wealthy without reducing expenses (other than magically reducing the PROJECTED spending). Once they use up that, they will come after you, me and the rest of the middle class. My point is simple: Government is addicted to spending and we are fools to think they have our interests in mind....they (either party) just want to stay in power by doling out goodies to their respective voting blocs and buddies. The above salary chart should clarify that for all.
Alethiologist November 26, 2012 at 11:36 PM
More than 279,000 federal employees, including members of the military, collectively owed approximately $3.42 billion in unpaid taxes as of Sept. 25, 2010, up 3.26 percent from the prior year, according to a recently released report from the Internal Revenue Service. The annual Federal Employee/Retiree Delinquency Inventory showed that among them are 36 aides to President Obama, according to ABC News, who collectively owed $833,970. Congress too had its share of tax delinquents, with 217 employees at the Senate owing a total of $2,134,501, while 467 employees at the House owed $8,535,974. And they still put us 16 trillion in debt!

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