A newly formed campaign in Connecticut announced its "Better Choices" budget plan to reform the state tax system and raise the revenue to protect crucial public structures – like schools, health care programs, roads, environmental protection agencies, and public safety organizations – from severe cuts that would undermine the state's economic recovery and quality of life.
On February 2, 2009, the new "Better Choices for Connecticut" campaign, which was formed by nonprofit providers, public service workers, and community and advocacy organizations, released a policy paper explaining a detailed plan to balance the state's budget through increased revenues. Connecticut Voices for Children is a member of the new coalition. The group says that proposals that depend heavily on service cuts will only deepen the recession in the short term and make the state less fiscally sound in the long-run.
Revenues in the "Better Choices" tax plan for Fiscal Year 2010 come from:
- Raising income taxes on the state’s wealthiest residents ($0.8 to 1.2 billion)
- Closing corporate tax "loopholes" ($130 to 150 million)
- A one percentage point increase in the sales tax ($575 to 625 million). This would be offset by new tax credits aimed at stimulating the labor force and economy:
- a state earned income tax credit (-$50 million)
- a new small business property tax credit (-100 million)
- Scaling back public subsidies to the entertainment industry ($90 to 100 million)
- Increased taxes on alcohol and tobacco ($78 to 80 million)
- Funds expected from the federal economic stimulus plan ($700 million)
- Funds drawn from the state's "Rainy Day Fund" ($500 million)
More details can be found in the news release and proposal below. Also see the Better Choices for CT Web site.
Organizations who want to join the Better Choices coalition can fill out the sign-on form.
