LIVE NOW /
Watch News 8 at 10pm

Lamont on collision course with top Democrats on Capital Gains Tax hike

News

Democratic leaders in both the House and Senate say there is no support for Governor Ned Lamont’s proposal to expand the State Sales Tax to almost everything except groceries.

They are pushing forward with a tax hike that the Governor has said he strongly opposes.

Finance Committee Co-Chair Rep. Jason Rojas (D-East Hartford) said his committee will give a plan to tax Capital Gains at a higher rate a full public hearing Friday. 

Capital Gains is income people make on gains in the stock market and on other investments, and it would be targeted specifically at high gross income earners.

Rojas explained, “A single filer making $500,000 a year or more, or joint filers making a million dollars a year there, would be an extra two percent tied to any Capital Gains that they realized in an income year.”

It’s estimated this increased tax rate would generate over a quarter of a billion dollars a year for the state, and it apparently has the blessing of the Speaker of the House, Rep. Joe Aresimowicz (D-Berlin), who said, “We believe those that are doing very well are obligated to pay their fair share.”

Related Content: Lamont budget office exploring Sales Tax on groceries

But the Governor noted he has said since the campaign he would not increase tax rates, and it penalizes people that invest in growing companies.

He added, “It makes us a lot more expensive than say, Rhode Island and Massachusetts, and makes us less competitive, so, no, I’m not inclined to do that at all.”

Republicans don’t support Lamont’s expansion of the sales tax, but they agree with him on no Capital Gains tax hike. 

Senate Minority Leader Sen. Len Fasano (R-North Haven) said,  “I just hope the Governor stays strong on this issue. I hope he doesn’t bend or fold.” 

The Minority Leader in the House, Rep. Themis Klarides (R-Derby), added, “When you can’t balance your budget in a responsible way, these are the proposals that come forward.”

The temperature on this is really going to go up over the next ten days because the tax-writing Finance Committee is probably going to be voting to approve this idea next week.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

Don't Miss

More Don't Miss