Rigby Worried About Tax Increase Proposal, Farmers

HARTFORD—The legislature’s majority tossed aside the plight of struggling Connecticut residents and companies Thursday by ignoring public outcry for innovative bipartisan spending reductions in favor of tax increases that would further harm the finances of businesses and people who simply cannot afford it, Rep. John Rigby said. Among the businesses ignored by House and Senate Democrats are Northwest Corner farms, the owners of which would be forced to pay sales tax on the items necessary to run these agricultural operations so vital to their local economies.

The proposal would remove tax exemptions afforded to farmers when buying items such as feed, fertilizer, seed, fuel and equipment. Rigby, a member of the legislature’s Finance, Revenue and Bonding Committee, asked the panel’s leadership today whether they it had performed a cost-benefit analysis—namely whether the tax revenue gained outweighed farm closures and job losses farmers statewide have said would certainly follow.

Colebrook resident Rigby voted against the entire tax package in committee today but was outnumbered by Democrats who approved it, sending the proposal to the entire legislature for consideration.

Rigby pointed out other issues in the plan he contends would hurt residents and businesses, including a 30 percent surcharge on the corporate profits tax. The proposal also applies retroactive tax increases and a promise of more aid to municipalities that regionalize services with no guarantee it would offset property tax increases included in the proposal.

Freshman legislator Rigby was not only disappointed with the proposal, but also the closed-door process that the majority used in crafting what many Capitol legislators have already deemed the biggest tax increases in state history.

“As we continue to review this proposal we’ll truly see the lack of creativity we desperately need to solve our budget problems,” he said. “Even worse, I’m worried we’ll uncover even more of these financial landmines.”

Citing a recent Quinnipiac poll Rigby explained that by a whopping 67-23 percent margin respondents said spending cuts, not tax increases, should be used to balance a projected $8 billion deficit over the next two years.

“Last fall, majority party candidates in every corner of this state talked about change,” Rigby said. “Today I saw that the business-as-usual routine hasn’t changed at all, and when people receive their tax bills they’ll see the same thing.”

• Tax increases on profitable corporations that employ thousands;
• A 20-percent income tax hike starting at $132,500 and tax hikes on higher brackets;
• Broadening the state sales tax;
• Elimination of some property tax exemptions for middle income families;
• No consolidation of governmental agencies to reduce costs as Rigby and Gov. Rell proposed.
• A 30 percent surcharge on the estate tax.