The Democratic controlled tax committee has voted out a tax package that increases income tax rates for high-earners, expands Connecticut's sales tax and legalizes keno.  The plan passed the Finance Revenue and Bonding Committee Wednesday on a mostly party-line vote. 

Freshman Republican state Representative Stephen Harding of Brookfield called it a smoke and mirrors plan.  Even though the sales tax rate is slated to decrease, there are exemptions being lifted.  He says the average Connecticut resident buys goods and services in the state, and this proposal will hurt them.  Services including accounting, veterinary, engineering and dry cleaning would be subject to the state's sales tax under the measure approved this week.

Harding says the Business Entity Tax is cut in half under the bill, but the Governor's plan would have eliminated it.  He says $125 every few years may not seem like a lot, but that's money in the hands of middle class and small business owners that's being taken away.

Harding says corporate tax changes being made could also significantly impact jobs.