Governor M. Jodi Rell told reporters yesterday that the latest iteration of her budget would include tax increases:
“I will be looking at revenue after I have exhausted as much in cuts as I can do, but they will be part of it,” Rell told reporters at the state Capitol when asked about tax increases.
The Governor indicated that more details of her tax hikes will be revealed today.
The move represents a decisive break from Rell’s months-long resistance to raising taxes. The Governor had taken a forceful stand against “revenue enhancements” and promoting the opportunity that Connecticut had to hold tax rates steady while other states were hiking them.
After the Quinnipiac Poll came out last week that showed 71% of respondents favored tax hikes on those making above $250k, some supporters feared that it wouldn’t be long before the “Quinnipiac Queen” caved on the issue.
The Waterbury Republican-American had a prescient editorial on Tuesday that addressed this point:
Soak the rich may be a good political slogan, but it has proved time and again to be an abysmal fiscal policy. All things considered, the state will be fortunate if income-tax receipts this year match last year’s, which is why budget negotiators should be focusing on reducing expenditures to bring them into line with the revenues of reality.
We will see later today how right they were.