Liberal Democrats want more tax hikes on the rich in final crafting of state budget

From Harford Courant.

As lawmakers scramble to finish a budget in the final full week of the legislative session, some liberal Democrats are concerned negotiators are not proposing enough tax hikes on the rich as they seek compromise with Gov. Ned Lamont.

Negotiators have agreed on the outlines of a plan that rejects a 2 percentage point surcharge on investment income of the wealthy after Lamont drew a line in the sand against the hike. In return, Lamont is dropping requests for a new tax on sugary beverages, as well as requiring cities and towns to pay part of the costs of teachers’ pensions.

But with plans for raising $262 million from the investment income tax increase dropped, some liberals say there are not enough taxes on the rich in the proposed budget. Lawmakers are calling for raising about $50 million per year in pass-through entity taxes, which are largely paid by wealthy business owners, and an additional conveyance tax on homes that sell for more than $2.5 million.

“It’s not enough,” said Rep. Anne Hughes, co-chair of the House Democratic Progressive Caucus. “It’s not even close to a fair and equitable budget. Houston, we have a problem. Where’s the rest of the revenue?”

See the complete article from Hartford Courant online.