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GOP Chair Urges A Surplus-Funded Tax Holiday, Malloy: What Surplus?

by | Dec 20, 2011 2:10pm () Comments | Commenting has expired | Share
Posted to: State Budget

Connecticut Republican Party Chairman Jerry Labriola issued a statement Tuesday calling on Gov. Dannel P. Malloy to order a one-week sales tax holiday using a state budget surplus. However, Malloy said the surplus doesn’t exist.

In the statement, Labriola urged the governor to issue an executive order beginning the tax holiday on Dec. 20. He cited a $101 million surplus projected in the state budget, which he said was caused by over-taxation.

“This money belongs to the people of Connecticut who continue to struggle under one of the heaviest tax burdens in the country,” he said. “Between the imposition of the largest tax increase in state history and the retroactive application of the state income tax increase that reached back to Jan. 1, the governor owes it to the citizens he has been overtaxing to provide them with immediate tax relief.”

Labriola said Malloy has helped state employee unions and should eliminate the state sales tax for a week to aid other taxpayers and businesses.

The problem is, any additional funds the state has at the end of the year have already been committed to other areas. The state has reserved $75 million to help transition to Generally Accepted Accounting Principles and anything left over after that will be reserved to pay down debt associated with 2009 Economic Recovery Notes.

Asked about the statement after a Capitol press conference, Malloy accused Labriola of helping to create the problem that required those funds.

“He was part of the gang up here that pretended our books were balanced when they weren’t and he represents the party of governors who never put in Generally Accepted Accounting Principles that made that obvious,” he said.

Malloy said there are billions in unfunded state employee pension obligations which former Republican Gov. John Rowland entered into and then didn’t fund.

“So I’m the new guy on the block who didn’t create this problem. I never served in the Executive Branch, I never served in the legislature, why Republic governors didn’t institute Generally Accepted Accounting Principles, and why they didn’t pay their obligations I have no idea. But I intend to make sure that they’re paid,” he said.

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(5) Archived Comments

posted by: NOW What? | December 20, 2011  4:24pm

Unbelievable. “Grand Old Party” politicians will say and do ANYTHING to save themselves a dollar or two - literally - and the hell with anybody or anything else including any hope for balanced budgets or services to help the poor, disabled or otherwise needy. Absolutely and pathetically unbelievable…

posted by: Noteworthy | December 21, 2011  10:56am

Dan The Tax Man Malloy is not wholly responsible for Connecticut’s budget mess - but his Democratic Party is largely to blame with the help of the GOP as well. But let’s face it. The Dems have controlled the Legislature forever and were the first in line to borrow rather than cut spending.

Malloy, as a strong advocate for previous taxes and state budgets as mayor of Stamford, is also to blame. His city like all the others, hired lobbyists, paid dues into confiscatory organizations like the League of Cities and others, whose main goal was to get more money out of Hartford.

More recently though, Malloy’s spending spree, borrowing spree and failure to extract much of a compromise from state unions has not made the problem better. His so called “fix” is to saddle state taxpayers with new and expanded taxes to the tune of nearly $3 BILLION which falls most heavily on the middle class.

It’s not the idea of a tax holiday that has Malloy huffing and puffing - it’s that any decrease in taxes would thwart his spending increases and his multi-billion borrowing binge.

Now that Malloy is living large in the big house, eating well with cooks, cleaners and security - being shuttled around like royalty - and paying for none of it, not even paying property taxes anymore, he’s happy as a clam. Or as Holder-Winfield correctly noted: “asshole.”

posted by: Really? | December 21, 2011  1:41pm

I’ll mention it here because it was referenced briefly in the article but the mid-year tax increase never should have been retroactive to January 1st.  That created a hardship on employees when that lump sum was taken and employers have scrambled to recalibrate their software calculations to catch up.  Other than that I don’t have a problem with taking any surplus and getting the house in order.  Let’s just not forget Mr. Governor who footed the bill to help get us back to a surplus so that maybe someday you can reduce those tax rates.  Oh, yeah, one more thing…if there isn’t a surplus in your words then make sure your budget offices and related agencies don’t also use that language when they report the numbers…maybe then we won’t be so confused.

posted by: SocialButterfly | December 21, 2011  10:16pm

Noteworthy:  You wrote an intelligent comment, but why did you ruin it by ending up with the word “asshole,” especially during the Holidays?  Show a little class!

posted by: Christopher55 | January 11, 2012  8:47pm

Thank you Dan.  CT has now replaced IL as the worst state to retire in.  Can’t wait to get out of here!!!

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