CT coalition offers revenue options

Connecticut should close corporate tax loopholes and raise taxes on the wealthy and consumers of unhealthy products to close the state budget deficit while preserving services that help families recover from the recession, a coalition of nonprofits, workers and advocates said Wednesday.

The coalition -- Better for Choices for Connecticut -- outlined at its news conference a report detailing what it says are options state budget officials and policymakers should consider to modernize  its revenue system while closing its massive budget deficit.

"We can balance the budget without relying solely on spending cuts that damage the state's economic future and harm families," Jamey Bell, executive director of Connecticut Voices for Children, said in a group statement.

Among the group's options:

·         Close corporate tax loopholes that benefit multi-state companies over local companies;

·         Evaluate the $5 billion in tax breaks in state tax laws and reduce or eliminate unproductive tax breaks;

·         Increase income taxes for those who can best afford it, the state's wealthy residents;

·         Delay reductions in the gift and estate tax, a tax that affects only a handful of the state's wealthiest residents;

·         Either increase the sales tax or modernize it to cover services rather than only goods;

·         Raise taxes on unhealthy products such as soda;

·         Restore the scheduled Petroleum Gross Earnings Tax rate increase; and

·         Tax excess profits of electricity generators.

"Coming to grips with the projected deficit requires both reductions in expenditures and increases in revenue," said William Cibes, who directed state budget matters under Gov. Lowell P. Weicker, Jr.  "It's not a question of if  revenues will be raised, but which revenues will be raised.''

The report, "Revenue Solutions for FY 2011," is available on the Better Choices for Connecticut website at www.betterchoicesforCT.org.