HARTFORD, CT (WFSB) -- In Gov. Ned Lamont’s budget address, he said he would not increase the sales tax.
He did, however, emphasize how the state’s tax code needs to be brought into the 21st century.
Gov. Lamont delivered his budget address on Wednesday afternoon.
The budget will not increase the sales tax but would be extended to certain services and goods.
This idea has small businesses and people talking.
When Donald Carrozella heard about how a sales tax could affect hair salon services, he felt like his business had been gutted.
“I think it’s another item that’s going to hurt small business,” Carrozella said.
In recent years, the co-owner of Platinum Hair Studio has seen customers look for slashed prices online for services and products.
If they’re faced with a sales tax, he fears for his stylists.
“The employees count on gratuities, people are going to get taxed, gratuities are going to get smaller,” Carrozella said.
Lamont is proposing goods and services be taxed equally, eliminating exemptions, including e-commerce.
It wouldn’t apply to certain items like food, prescription and business to business deals.
Following the address, people shared how they felt about the budget address.
“I really don’t think we need more taxes on things,” said Donna Grover, of Rocky Hill.
“I don’t think it’s a bad thing. He made a good point, things like movie theaters and all are taxed so why shouldn’t Netflix be taxed,” said Warren Weigel.
If lawmakers can get behind this sales tax expansion, it’s projected to bring in more than $500 million a year by 2021.
Read the full budget address here.