Rell blasts Dems' budget proposal

Hartford (WTNH) - Gov. Jodi Rell had some harsh words after getting a look at the Democrats' budget and tax proposal calling it an "economic disaster" that "almost defies description." 

It's no surprise that the Republican governor would have a different stance from the Democrat-controlled General Assembly on the state budget. Rell says the Dems' budget has "astonishing" tax increases, "unidentified, unspecified cuts," and want to borrow money to close this year's budget deficit.

"You know the 'Phantom of the Opera' may be coming here to the Bushnell on April 26th...but I can tell you that the 'phantom of the budget' is opening today, right here at the state Capitol," Rell said in an afternoon press conference.

"We're putting an honest budget on the table and we expect to have an honest dialog with the administration," said Rep. Cameron Staples (D-Finance, Revenue & Bonding Committee).

Rell says the Democrats' budget does not cut one agency and every Connecticut resident will see a tax increase of $1,000 annually.

"The largest tax increase in our state history. Historic increases in corporate surcharges," said Sen. John McKinney (R-Minority Leader).

The proposed income tax increases range from a 20 percent hike to an over 50 percent hike for those making over a million dollars a year. Republicans say there is very bad news in this plan for struggling businesses across the state with a 30-percent surcharge on the corporate tax for the next three years. There will also be a phase down of the $500 property tax credit - a tax break for average income people Democrats have touted for years.

"There were no sacred cows and you're right, this has been a Democratic initiative, but everything had to have been on the table," said Sen. Eileen Daily (D-Finance, Revenue & Bonding Committee).

The Democrats also announced they want to tax more of what you buy on the Internet, aptly named the Amazon Tax.

"It requires Internet companies that have a presence in the state through a commission basis to collect sales tax on sales through the Internet," Rep. Staples said.

And there's even a jump in what the Republicans call the Dead Millionaires Tax.

"The Estate Tax, already one of the highest in the United States of America, is going up again, another 30 percent," said Rep. Larry Cafero (R-Minority Leader).

Rell says that a lot of the spending cuts are phoney and that $500 million in borrowing for current expenditures won't fly. The Democratic leadership is asking that face to face budget negotiations begin immediately.