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Tax and Budget Reform

CT: Higher fees, cigarette tax among new Connecticut laws

The Day:

A new month brings new fee and tax increases in Connecticut.

Starting today, the state's cigarette tax jumps from $2 to $3 a pack; most bottles of water will cost a nickel more because of an expanded bottle and can redemption law; and hundreds of state licenses and fees, ranging from a pet shop license to the cost of filing small claims cases in superior court, will be higher.

States Using Common-Sense Tax Increases to Deal with Budget Deficits

States have traditionally raised taxes in past recessions.  Yet, those states that did raise taxes suffered no drop in annual growth rates compared to states that depended on budget cuts alone during recessions. The reality is that long-term growth is dependent on making common-sense public investments, even and especially during economic downturns.  This is one reason that the states which collect the highest percentage of personal income in taxes actually sustain higher income growth.