Proposed budget raises tax for wealthy

Hartford (WTNH) - Democrats at the State Capitol say they are ready to approve a state budget plan to pull the state out of a budget crisis before the end of the budget year on June 30. But it's a plan the governor will never go for.

The Democrats say they've made major cuts in spending, although no one has actually seen them yet. They want to balance the rest on the state's high income earners, a proposal that the Governor will never go for; and one they may actually not be able to pass.

Democratic Senate Leader Don Williams was attempting to sell the plan to Democrats in the State Senate behind closed doors today. There is some doubt he can do it.

It is a version of the 'half-millionaires tax,' increasing the income tax rates on those over $500,000 to six percent, over $600,000 to $650,000 to 6.5 percent and those over $750,000 at 7.5 percent plus a 25 percent surcharge tax on business profits.

Almost exactly what the state labor unions are pushing for in their TV ad campaign.

"You're seeing budget cuts in the billions of dollars that will impact low income folks, middle income folks and now, I think some folks are rightly saying; that the wealthy in the state of Connecticut need to be at the table as well," Williams said.

"It's not just the tax on high end earners, I've said this from the very beginning, you have to cut spending before you look at any revenue," Rell said.

Finance Committee co-chairman Cam Staples thinks the Democrats' plan proposes as much in spending cuts as a majority will be willing to vote for.

"What we're going to do in our budget is try to put the best thing we can forward before the end of this year," Staples said. "If she vetoes it we're back to the table and working at it again."

For Republicans that's fine because right now they feel totally left out.

"I think the people of the state of Connecticut want Republicans and Democrats the legislature and the governor, to work together," McKinney said. "And right now, we're not."

If Williams thinks he can get enough votes in the Senate, the House and Senate will take up this plan some day next week.