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News

Lamont's Budget Will Tax Services, Some Goods

Cindy Caron

By: Christine Stuart, CT News Junkie
February 20, 2019

Gov. Ned Lamont’s first two-year budget proposal will include taxes on sugary beverages, plastic bags, liquor bottles, legal services, interior design, real estate, veterinarian services, accounting services, digital downloads, home renovations, winter boat storage, over-the-counter drugs, and newspaper and magazine sales.

The budget Lamont proposed to a joint session of the General Assembly at noon Wednesday includes projected revenue increases of $1.28 billion in the first year and $1.76 billion in the second year. Of those totals, revenue from “new” taxes — mostly from sales tax on items that were previously exempted — will be $253.5 million in 2020 and $651.5 million in 2021.

Lamont contends that 80 percent of the revenue changes in 2020 and over 62 percent of the revenue changes in 2021 continue current policies or undo “unrealistic tax cut promises.”

Overall spending in Lamont’s proposal will increase 1.7 percent in the first year and 3.4 percent in the second year.

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