Connecticut's senators vote to kill income tax; governor's veto expected.

Connecticut's senators late Wednesday voted to repeal the state's recently enacted tax on wages and salaries, replacing it with an 8.25% sales tax and other measures.

The measure would create, in addition to the higher sales tax, a separate tax on investment income, delay a $70 million contribution to the state teachers pension func, and impose $453.1 millions of cuts in general fund and transportation spending.

The package, an amended version of legislation approved by the state House of Representatives on Monday, passed by a vote of 21 to 15 -- short of the 24 votes needed to override a gubernatorial veto.

The income tax repeal measure will head back to the lower chamber for approval of its amendments today.

The amendments pertained to an array of issues, such as whether to allow video slot machines at the state's jai alai frontons and other gambling facilities. The amendments also excised a provision to establish a Connecticut Institute for Municipal Studies.

Gov. Lowell P. Weicker Jr. is expected to veto the package as soon as it reaches his desk. That would send the measure back to the state's General Assembly for an attempt to override the veto, which would probably take place next week. Lawmakers spearheading the repeal movement hope to change the minds of more of their colleagues to their cause before the override vote.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER