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Thu March 13, 2014
Barnes: Proposed State Tax Rebate Will Generate 1,000 Jobs
The Finance, Revenue and Bonding Committee held a public hearing to discuss, among other proposed legislation, exempting a portion of teachers' pensions from the personal income tax, and exempting nonprescription drugs from the sales tax.
In his proposed budget for the fiscal year beginning July 1, the governor suggested using $155 million of the state's estimated $500 million budget surplus to provide gas and sales tax refunds. It would work out to $55 for individuals earning less than $200,000 and $110 to joint filers earning less than $400,000. Malloy's budget office estimates more than 2.7 million people would be eligible for rebates.
Speaking before the committee, state budget chief Benjamin Barnes said the rebate proposal will create 1,000 jobs, according to a UConn estimate. Barnes said most recipients will likely spend the money on goods and services in the state relatively quickly, creating a "high multiplier effect."
This report includes information from The Associated Press.