Connecticut Tax Hike Likely: Democrats

Top Democrats in the State House of Representatives say that tax increases in one form or another are highly likely, especially after the state took a drastic hit in income tax collections recently.

“Are we going to raise taxes here in the state of Connecticut, I would imagine we do in some way, shape or form," said House Speaker Joe Aresimowicz.

Aresimowicz added that like Gov. Dannel Malloy he wants to avoid having to borrow to close out the current fiscal year. The deficit stands at around $380 million for the current year, something which can be difficult to overcome because there are only $236 million in emergency reserves and only two months to close the gap. The state has dealt with last-minute budget deficits before.

Borrowing to cover a budget deficit would negatively impact Connecticut's credit rating and make future borrowing more expensive, Aresimowicz said.

Income tax paid by the top 100 taxpayers fell by 45 percent from last year.

Any tax increases would have to go toward specific goals, Aresimowicz said.

"I know my caucus is pushing back against any revenues that’s not going back to a directed source," he said.

The budget for next fiscal year will be about $600 million worse and $864 million worse in the fiscal year after that, said Office of Policy Management Secretary Ben Barnes Monday. The new information brings the estimated budget deficit for the next two fiscal years to around $5 billion.

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