The governor Wednesday vetoed a bill to tax bonuses paid to Connecticut residents who work for financial companies that received federal bailouts.
Gov. M. Jodi Rell said she agrees such bonuses are inappropriate but saying Senate Bill 1 will trigger an automatic deficit and a long, costly and potentially unwinnable legal battle.
The tax would have raised an estimated $2.8 million and $4.7 million a year, according to the Legislature’s budget office.
The bill was aimed primarily at employees of AIG, which received a controversial $183 billion taxpayer bailout.
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