Republican Senate Minority Leader John McKinney, who is also running for governor, used a memo that shows income tax receipts lagging as a reason the scrap the $55 tax refund.
In this memo OFA says revenue collections are nearly $204.6 million or 16.7 percent below target. That means the state still needs to collect $612 million before April 30 if it’s going to end the 2014 fiscal year with a surplus of more than $500 million.
Democratic Gov. Dannel P. Malloy and the legislature’s Democratic majority planned to use the $155 million to give about 2.7 million taxpayers a $55 check in the months leading up to the November election.
“A $55 rebate in lieu of permanent and meaningful tax cuts is an insult to taxpayers that should never have been proposed in the first place,” McKinney said. “A $55 rebate isn’t even enough money to fill up most gas tanks, and certainly not enough to fill a tank in Connecticut where our gas taxes are among the highest in the nation.”
The governor’s spokesman said that McKinney needs to “stop rooting for failure.”
“Governor Malloy’s proposal to issue a refund to taxpayers is part of an overall effort that will put money in the rainy day fund, pay down our long-term obligations, and provide some necessary tax relief for residents,” Doba said in a statement. “If Senator McKinney was so concerned with gimmicks, he wouldn’t have put out a Republican ‘budget’ that included a $120 million dollar tax increase on working families and $54.8 million in phantom, unspecified cuts that are not detailed anywhere.”
The consensus revenue estimates, which will an accurate depiction of where the states revenues are at, will be released by April 30. It’s those numbers that will be used to finalize the budget adjustments.
The General Assembly adjourns on May 7.