Connecticut Raises Taxes a Record $2.6 Billion for Budget

Connecticut Governor Dannel Malloy signed a $40.1 billion two-year budget that raises taxes by $2.6 billion, the biggest increase in state history, according to Republicans who fought the plan.

The budget passed by the House of Representatives and Senate yesterday raises taxes on incomes of more than $50,000 a year. It boosts the retail-sales levy to 6.35 percent from 6 percent while broadening it to cover previously exempt goods and services. The rate becomes 7 percent on “luxuries” such as $1,000-plus clothing and boats above $100,000.