There's no sales tax on groceries in Connecticut. But Gov. Ned Lamont's budget could change that.
Gov. Ned Lamont wants to end Connecticut’s cycle of budget deficits, deliver property-tax relief and amass a fiscal bulwark against the next recession. But to do it, he may push wary legislators to extend the sales tax for the first time to groceries, medications and other long-exempt items.
Lamont pledged during the 2018 campaign that he would not raise the income tax or empty the state’s budget reserves to close a shortfall of $1.5 billion projected for the coming fiscal year, saying neither of those measures would bring fiscal stability to a state that has struggled to balance its budget in every year but one from 2007 to 2017.
While removing these exemptions could generate hundreds of millions more a year for the state’s coffers, Lamont would find it extremely difficult to sell lawmakers on the idea of taxing bread, milk, and medicine — even with the lofty goal of fiscal stability.
“In order to build a better budget — one that will attempt to provide the much-needed stability for economic growth through the next two years and through the next decade — we need to explore new and different options,” said Chris McClure, spokesman for the governor’s budget office. “This means leaving no stone unturned, and engaging in all necessary conversations so we can evaluate and analyze ways to achieve and retain balance.”
Read more: https://www.courant.com/politics/hc-pol-ned-lamont-tax-groceries-20190128-ebn2q2qhfjgcracg4o2x62o2vu-story.html
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