Press Releases
06/12/2015
Gov. Malloy Proposes Improvements to Historic Budget Agreement
(HARTFORD, CT) - Governor Dannel P. Malloy today announced proposals for budget improvements that will reduce spending and eliminate business taxes, while preserving historic investments in transportation and property tax reform. This improvement plan assures that Connecticut remains on a path of long-term sustainability.
Under Governor Malloy's budget improvement plan, the Computer and Data Processing Tax would be maintained at 1 percent, combined reporting would be deferred to January 1, 2016, revenue generated through the sales tax on car washes and parking would be eliminated, the Tax Credit Cap would be raised to 55 percent, and taxes on the World Wide Web would be set at 1 percent. In sum, the two-year tax reductions would lower revenue by $223.7 million. He will ask the legislature to grant him authority to make reductions of up to 1.5% of spending across the board.
"I have always been clear that I believe that we need to be smart about spending, about revenue, and about our future. We've made significant economic progress over the past several years, and with historic new investments in transportation, we're poised to grow even more. Even as we have one of the lowest effective corporate tax rates in the nation, these steps are being made to protect Connecticut's long-term interests, because I believe in doing everything possible to expand our economy," Governor Malloy said. "Coupled with once-in-a-generation transportation investments, these proposals will support Connecticut's future."
The changes would reduce the spending increase in FY 16 compared to the current fiscal year to 3.25% - moderate growth. The across-the-board reductions apply to all line items in the budget, except accounts legally required to be funded at the appropriated levels.
- Twitter: @GovMalloyOffice
- Facebook: Office of Governor Dannel P. Malloy