Malloy Letter Stresses Middle-Class Relief

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Gov. Dannel Malloy wrote a letter to the state's local leaders stressing his priority to help middle class residents. Photo Credit: File Photo

FAIRFIELD COUNTY, Conn. — Gov. Dannel Malloy is telling the state's municipal leaders that middle-class tax relief is a priority with his administration, a statement said.

The governor has written a letter to local officials about his spending plan to eliminate the local property taxes on vehicles valued at less than $28,500 and reinstate the sales tax exemption on clothing costing less than $50, the statement said.

Cities would have the option of implementing the car tax exemption in 2013, before it goes into effect statewide in 2014, the statement said. While residents would see savings, municipalities would because they wouldn’t need to spend money collecting the taxes, the statement said.

The tax exemption on clothing would start in July 2014 on items costing less than $25, and rise to $50 items in July 2015, the statement said.

Cities and towns would receive the same amount of funding from the state, and possibly more, without raising taxes because of $1.8 billion in savings at the state level, the statement said.

“This is a tough budget, built for tough times. Connecticut is making hard decisions and setting priorities in order to live within its means,” Malloy said in the letter. “We’re all public servants, but we’re also citizens and taxpayers; we can hopefully agree that all levels of government must change with the times, find savings and operate efficiently.”

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Comments (9)

lwitherspoon:

"Malloy admitted his proposal to eliminate taxes on vehicles valued under $28,500 will affect local budgets, saying the change offers middle class relief."

Source: http://www.stamfordadvocate.com/local/article/Mayors-slam-state-aid-cuts-to-towns-cities-4283643.php

How does this constitute "middle class relief" when the cities will be forced to either cut services or raise taxes on real estate to make up for the loss of the motor vehicle tax revenue? Gov. Malloy claims to support increased education funding, yet he's taking away a revenue stream that cities rely on to fund schools. What a hypocrite.

Paige:

It's a shell game. Look! The vehicle tax is reduced. It's a tax cut! Oh, and by the way, your property taxes just went up another .5 mill.

DavidA:

Apparently Gov. Malloy thinks it costs $15 million to collect $15 million in Norwalk. Only a fool would think this is a tax cut. Towns and cities will raise mill rates on property owners to make up what is lost via a car tax and landlords will raise rents. The state will still collect the taxes just through a different channel.

If the Governor is serious about middle class relief then he should cut the income tax rates and reduce the gas tax. That will help the middle class and also make the state more competitive with others so that businesses might think about moving here. But don't hold your breath waiting for him to do that.

lwitherspoon:

Agreed. $15 million is a lot of revenue and it's irresponsible of Gov. Malloy to propose taking it away from cities without explaining how he will replace it.

I find it very funny that Gov. Malloy is proposing elimination of a revenue stream that's crucial for balancing city budgets. The cities should get together and propose elimination of the state's income tax, and see how Gov. Malloy likes it.

norwalkspends4:

Right David.

But not only will "the rich" and their $29,000 cars pay a higher share of taxes, but the shortfall will be made up in higher property taxes on......"the rich" ...further increasing the share of tax paid by a smaller and smaller number of people....

The incentives for growth and prosperity are being erased one by one by our liberal establishment's quest for a free lunch and the votes its promise brings.

Tim T:

Thank you Democrat Malloy for yet another tax cut. It seems the Republican Moccia is against this..Very typical of the tax and spend Republicans.

Ken P Jr:

Might be the ONLY way we will ever see any reduction in spending is if the moneys just not there. God knows I dont want to support Malloy, but if he wants to actually cut taxes I'm behind him on that. Of course I do recognize the irony, given him being the former mayor of Stamford. He knows what this would do & its probably just more liberal BS to make us THINK he cares by pushing for something he knows wont happen.

That said, simply cutting funding is what we need to do from Washington to city hall. We simply spend too much money.

lwitherspoon:

"While residents would see savings, municipalities would also because they wouldn’t need to spend money collecting the taxes, the release said."

The City of Norwalk's budget includes about $15 million from car taxes, which is approximately 5% of City spending. How will those funds be replaced, or what service cuts will there be?

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