Malloy administration, legislators shake on tax deal

[NutmegYankee]

Published May 31. 2015 10:26AM
Updated May 31. 2015 10:58AM

MARK PAZNIOKAS, Connecticut Mirror

Legislative leaders struck a tax deal with the administration of Gov. Dannel P. Malloy moments before midnight Saturday, setting the stage for action Monday on a biennium budget that would raise taxes on the wealthy and business, while funding property-tax relief and transportation.

The top marginal income tax rate would increase to 6.99 percent on singles earning $500,000 and couples earning $1 million, but a proposed 2 percent surcharge on capital gains was discarded.

A legislative plan to extend the sales tax to a wide array of business services was largely shelved, but the tax on data-processing services would triple to three percent.

The total sales tax would remain at 6.35 percent, but a half-percent would be dedicated to the governor’s transportation infrastructure program and a half-percent would be used for a property-tax relief program championed by legislative leaders.

http://www.theday.com/state-news/20150531/malloy-administration-legislators-shake-on-tax-deal