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June 17, 2008

Legislative Democrats Say They'll Vote On Unilateral Budget Plan
By: Christopher Keating
Reprinted from The Hartford Courant

With budget talks with the Republican governor stalled, the Democrat-controlled General Assembly is expected to vote as soon as next week on its own budget plan, which would raise the state income tax on Connecticut's wealthiest residents.

House Speaker Christopher Donovan said the vote will be taken because Democrats and Gov. M. Jodi Rell are still far apart on a budget compromise that the governor would be willing to sign.

"If we don't have an agreement, we'll certainly vote for something before June 30," Donovan said Tuesday. "We haven't had really focused discussions with the governor as of yet."

Donovan said the Democrats will drop their plan to eliminate the sales tax exemption on some computer and data-processing services, something that had prompted complaints from information technology companies.

Donovan said the budget package would include "a progressive income tax," but he declined to provide details on the rates. At the committee level, Democratic lawmakers voted in April for increased income tax rates for couples earning more than $250,000, but some legislators have recently been pushing to boost the income threshold to $500,000 per couple so that fewer people would be subjected to tax increases.

In addition, the tax-writing finance committee voted for a 30 percent surcharge on the corporate profits tax, but some lawmakers are pushing to drop that figure to 25 percent.

The House of Representatives will meet in special session Friday on other issues, but Donovan said that that would be too soon to vote on the Democrats' budget plan.

Rell's spokesman, Christopher Cooper, criticized the lack of details in the Democratic proposal. Rell has criticized proposed tax increases and offered her own budget with no tax increases, but large reductions in spending.

"The Democrats should put their cards - and their taxes - on the table," Cooper said. "Why all the mystery? It's like a game of three-card monte. Unfortunately, the taxpayers are the victims."

"This is like going on a blind date and finding out that Freddy Krueger is who is picking you up," Cooper said. "When the Democrats are ready to close their Off-Broadway production of ' Wicked' and negotiate a budget that is in the interest of all the people of Connecticut, Gov. Rell will be glad to sit down with them."



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