House Republican Press Release

June 11, 2008

Press Office: 860-240-8700

REPUBLICANS FORCE GAS TAX ROLL BACK

DEMOCRATS STILL BLOCK GOP BUDGET THAT SAVES $155 MILLION IN PAYROLL

HARTFORD – Bowing to Republican pressure and public anger, the legislature today rolled back a scheduled July increase on the gasoline gross receipts tax. But Democrats voted down the GOP alternative budget that saves Connecticut $155 million in payroll and restore valuable programs including school reading, and provides money for battered women shelters and nursing homes. 

House Leader Lawrence F. Cafero, Jr., of Norwalk said the Democrats also tried to stifle debate and abused the legislative process to prevent votes on amendments fearing voter backlash. The Democrats also used the special legislative session to raise real estate taxes by $35 million, a move the Republicans also opposed.

“The Democrats finally acceded to the pressure we put on them and the public outrage when they realized another gas tax was going into effect July 1. I’d like to say ‘better late than never’ but this is ‘too little, too late,’’’ Cafero said. Democrats will still allow future gas tax hikes as the wholesale price increases. “Without capping the wholesale gas tax, taxes will continue to skyrocket,’’ he said

Republicans put forth a four-point plan on gas taxes:

· Roll back the scheduled .5 percent hike on gross receipts;

· Cap the wholesale price that the gross receipts tax is based upon;

· Allow gas stations to give a price break for those who pay cash;

· Cut the state gas tax by 10 cents per gallon for the summer peak driving months.

“We are glad the Democrats finally decided to do something about the gas tax increase but we should have done more. Our alternative budget was balanced and restored many programs that the Democrats cut by doing nothing during the regular session,’’ Cafero said

The Democrats again voted down the Republican alternative budget to save $155 million in payroll through an Early Retirement Incentive Program that restored critical spending cuts: 

• $20 million for the Early Reading Success program for 15 towns an cities;
• $2 million for added security at battered women shelters;
• $27 million more struggling nursing homes and other service providers.
• Elimination of the state’s take from the real estate tax without costing towns and cities any loss ion revenue.