July 25, 2014

Budget cuts $685 million in taxes

Tax collection would drop by almost $700 million under the proposed state budget.

According to a report from the nonpartisan Legislative Fiscal Bureau, state taxes would be cut by a total of $685 million over the next two years. When combined with a proposed $7.7 million increase in fees, the state would see a net decrease in tax collections of $677 million.

Among other things, the budget includes stronger enforcement efforts to collect overdue taxes, which the fiscal bureau says would bring in an extra $92 million over the two-year budget period.

Democrats argue the proposed tax cut favors the rich, although Republican supporters say all income brackets would see reductions.

The state Assembly starts debate on the two-year spending package on Tuesday.