In an effort to find compromise with majority Democrats, Gov. Jodi Rell has indicated her willingness to accept an increase in taxes on people making over $500,000, as long as Democrats cut spending, eliminate the estate tax, and cut the sales tax from 6.0% to 5.5%.
Once again, Rell takes everyone by surprise on the eve of major Democratic action. So far Democratic leaders are in their usual state of befuddlement, so we won’t have any kind of idea where this is going to go until tomorrow.
So the wealthy would see a tax increase, but they’d also see estate taxes disappear. Therefore, they might stick around (though there is precious little evidence that they’ve actually been fleeing the state in droves). Sales tax decreases would impact everyone, and the governor seems to think that the decrease could act as an economic stimulus.
What do you think?