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February 18, 2011

Connecticut Governor Proposes 3-Cent Gas-Tax Increase 

Gov. Dannel Malloy proposed Wednesday a state budget that would increase Connecticut's gasoline tax by 3 cents per gallon.

The proposal is part of one of the largest and most wide-ranging tax increase proposals in Connecticut history, the Hartford Courant reported. Malloy asked the legislature to raise taxes on income, alcohol, gasoline, and estates. The current 6% sales tax would rise to 6.25% under the Democratic governor's plan.

Overall, Malloy -- who has been in office for six weeks -- is proposing more than 50 tax changes in a package that would increase taxes by $1.5 billion in the first year and $1.3 billion in the second year.

Any changes to the tax rates would require approval by the Democratic-controlled legislature, which might not vote on a final package until June or later.

Malloy's budget would set the gasoline tax at 28 cents per gallon, up from the current 25 cents. Combined with a gross receipts earnings tax of about 20.4 cents per gallon and the 18.4-cent-per-gallon federal tax on gasoline, that would mean a combined 66.6 cents per gallon in taxes for Connecticut motorists instead of the current 63.6.

Michael Fox, executive director of the Connecticut-based Gasoline & Automotive Service Dealers of America, denounced Malloy's plan to raise the tax on gas and diesel fuel.

"I know times are tough. I'm not anti-tax,'' Fox said. The gas tax is "the wrong tax to raise. When you make a product uncompetitive, people can easily avoid it. ... The higher the price, the more uncompetitive Connecticut becomes."


Questions regarding this article may be directed to editor@aashtojournal.org.

 
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