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Coupon Clippers Not Happy with Governor’s Sales Tax Changes

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HARTFORD, Conn. (AP) _ Shoppers who use coupons and discounts are angry at Gov. Dannel P. Malloy’s proposal to impose a state sales tax on the original price of a good or service rather than the discounted price.
Ending the sales tax exemptions for coupons, discounts and automobile trade-ins are among the tax exemptions Malloy has proposed ending to help close Connecticut’s projected $3.5 billion deficit. For example, the plan would tax the $30 cost of a blouse, not the $15 sale price.
Benjamin Barnes, who is Malloy’s budget chief, says he understands why shoppers are upset and says he doesn’t like it either. But the administration must examine numerous tax exemptions to reduce the budget deficit.
The sales tax would raise $92 million over two years and is one of many Connecticut sales tax exemptions that would end.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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