Rell Proposes Tax Increase (CT)

[brooklynite]

HARTFORD, Conn. (AP) -- Gov. M. Jodi Rell on Wednesday proposed raising income and cigarette taxes to help fund a five-year, $3.4 billion education initiative and cover Connecticut's growing expenses.

The Republican, who won her first full term in office by an overwhelming vote in November, said state politicians have talked for years about retooling the state's complicated public education funding system. She said her budget will restore fairness, pumping tens of millions of dollars into local school district budgets.

``I firmly believe that we are making history today with this unprecedented commitment to education,'' Rell told a joint session of the Democrat-controlled House and Senate. ``It is our obligation as government leaders. It is our call to leadership.''

The $35.8 billion, two-year tax and spending plan calls for increasing the personal income tax rate as much as half of a percent over two years. The maximum 5 percent rate would climb to 5.25 percent in the first year and to 5.5 percent in the second. The increase would be smaller for people in lower tax brackets.

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Its a good thing Republicans believe in fiscal responsiblity, or they might get upset...