State Income Tax Increase to aid State School Aid; other tax changes as well are likely

According to the 2/12/07 article in the New Haven Register entitled "Income Tax Increase Certain", Jodi Rell wishes to increase the state income tax over the next two years, increasing in July 2007 and July 2008 by 1/4% each time. This would apparently raise taxes by $1.3 billion.

Some have expressed concern as to why Rell wishes to raise taxes when we have $1 billion in the state's "Rainy Day Fund" and a projected $500+ million budget surplus, particularly when the cost of electricity has so dramatically risen. Some have called for a 'stepped' increase that would more greatly burden the wealthy, and less dramatically affect the poor.

Additionally, Jodi Rell has indicated that she wishes to increase the tax on cigarettes from $1.51 to $2 per pack. (There's less opposition voiced here, apparently given the ill health effects of cigarette smoking).

In the area of reducing taxes, Rell wishes to eliminate the estate tax, which according to the article "would reduce state revenue by about $20 million in the first year".

How much more can West Haven Taxpayers bear? I've seen houses reduce their selling prices by *1/3* in order to try to sell, now... and more are going on the market...