House Republican Press Release

May 2, 2007

Press Office: 860-240-8700

Rep. Williams: House Republican ‘No Tax increase’ Budget Fairer to Middle Class, Working Families

Democrat Budget Hikes Regressive Sales Tax on Those Least Able to Afford It

The House Republican ‘No Tax Increase’ alternative budget unveiled last week is fairer to middle class and working families than the Democrat budget proposal, which eliminates exemptions from the state sales tax on clothing costing less than $50 and on funeral services, state Representative Sean Williams said today.

The House Republican budget proposal maintains current services and increases education aid to towns and cities without raising any taxes.  Both Governor Rell and legislative Democrats have made budget proposals which significantly increase state spending and taxes.

“Connecticut taxpayers are very concerned – and for good reason –the budget debate for the most part has not been about whether to raise taxes, but how much to raise them,” said Representative Williams, R-Watertown.  “Connecticut taxpayers already shoulder one of the heaviest tax burdens in the country. The one thing we do not need is another tax increase.”

The proposal by legislative Democrats includes several new and increased taxes, including repealing the sales tax exemption on clothing under $50 and removing the tax exemption on funeral services, which would hit middle class and working families the hardest, Representative Williams said.

“For a party that perpetuates the myth that they support the middle class and working families, the Democrat budget does a real number on those who can least afford to pay more taxes,” Representative Williams said.  “Knowing that 30 percent of Connecticut taxpayers don’t earn enough to pay state income taxes, the Democrats should not be eliminating tax exemptions that benefit low income and middle class families the most. The sales tax is incredibly regressive and it is simply reprehensible that they would try to balance their budget on the backs of those who can least afford to pay.”

Representative Williams further noted that the House Republican budget proposal would maintain current services and send more money to towns and cities for education because it does not underestimate projected state revenues. Over the past 14 years, the legislature has underestimated projected revenues by approximately $5 billion.  Even taking into account the post 9/11 recession, the legislature has underestimated revenues by an average of 3.5 percent per year, Representative Williams said.

 “In a perfect world, we would be cutting spending and taxes, but the reality is that the majority Democrats are now on a path that will lead to massive spending and tax increases. We are calling their bluff by putting a workable alternative on the table which would accomplish most of the goals they claim to espouse without raising taxes,” Representative Williams concluded.  “They can take our proposal or leave it, but in the end, they will have to explain to the people of Connecticut why they added to our already heavy tax burden for no good reason.”