June 3, 2015

House agrees on CT budget that includes unitary biz tax

PHOTO | Pablo Robles
PHOTO | Pablo Robles
House Speaker Brendan Sharkey (D-Hamden).

One half of Connecticut's legislature has come to terms with the state budget for the next two years.

House Speaker Brendan Sharkey's office announced the deal at 11 a.m.

"It invests in Connecticut's transportation infrastructure which is critical to our future economy, asks the wealthy to pay a little more, and sets our state on a more stable, equitable path going forward," Sharkey said.

The Connecticut Mirror reported that the vote was a narrow 73-70, and that the agreement still includes a controversial unitary tax on corporations with operations in multiple states.

According to budget documents, the unitary tax would raise $62.3 million over the next two years. Several major companies, including Aetna, Travelers and General Electric, have criticized the proposal.

Meanwhile, a new top marginal tax rate of 6.99 percent for high-income residents would bring $289 million to state coffers over that time. Another $123 million would come from raising the sales and use tax on computer and data processing services to 2 percent next year and 3 percent in fiscal year 2017.

The Senate now must try to reach agreement on the budget. The legislative session officially ends Wednesday at midnight.

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