Rell proposes 'sin' taxes

Hartford (WTNH) - The state budget battle turned into class warfare at the State Capitol today as another deadline forces more budget plans.

Both the Democrats, who control the Assembly, and the Governor, were forced by a new law to propose new budget solutions. But they do not appear to be much closer to one.

For the first time in the long budget standoff, Governor Jodi Rell is proposing tax hikes. She’s not jumping over to the Democrats side of the table but she is stepping their way.

“In terms of new taxes, I am proposing increases in what are commonly referred to as ’sin taxes.’ (Cigarettes and alcohol) and I am proposing a three year surcharge of 10 percent on corporate taxes,” said Governor Rell.

The Governor notes that her tax increases are less than one quarter of what the Democrats are proposing but she has now opened the door to tax hikes.

“She wants to get a budget, she has an obligation to govern and in the face of dealing with a super majority of Democrats, who believe that taxation is the way, she put this out as a compromise,” said Rep. Larry Cafero.

Street theater met class-warfare on the steps of the State Capitol as state labor unions and other political activists staged what they called ‘Billionaires For Budget Cuts.’ The satire was aimed at Governor Rell’s opposition to increasing taxes on the state’s high income earners.

“We’re all united in the belief in a government of the rich, by the very rich, and for the filthy rich,” said Debra Noble of Simsbury.

A spokesman for the Governor said the Democrats had aligned themselves with Communists because the Communist Party had promoted this event today on their websites.

The Democrats, who control the budget writing committees, approved a new plan today that still increases taxes on the wealthy and business and on estates but at lower rates than their previous proposals.

“We have cut more, we have winnowed down the tax package; right now it essentially brings the wealthy to the table,” said Senator Don Williams.

“The Democrats, a couple of months ago, came out with $2.25 billion in taxes and they have reduced that number to $1.7 billion worth of taxes,” said Rep. Larry Cafero.

In reacting to the Governor’s tax proposals, Senate President Pro Team Don Williams said, “She is taxing the six pack but not the six figure salary.”