Connecticut Governor Dannel Malloy’s proposed tax rebate will not show up in taxpayers’ mailboxes after all. The Democratic governor had offered the $55-per-person checks earlier this year, but Malloy’s budget director says taxes on capital gains have come in hundreds of millions of dollars below expectations, shrinking the state’s projected surplus. Malloy still defends his decision to offer the rebate.
“It wasn’t a gimmick,” says Malloy. “I happen to firmly believe and still believe when we have lots of money come in, well in excess of what we otherwise predict, that that should be shared with taxpayers.”
Republican House Minority Leader Lawrence Cafero says the rapidly shrinking state surplus is a sign that the Malloy administration’s economic policies are failing.
The Associated Press contributed.