Connecticut Coupon Users May Have to Pay Taxes on Full Purchase Price

Coupon TaxConnecticut Governor Dannel Malloy announced yesterday he wants coupon users to pay sales tax on the full price of their purchases. Sounds like yet another state legislator trying to gouge the public in a new and improved way.

Here’s how it works: Let’s say you’re a fan of extreme couponing and purchase $250 worth of dry goods for $12.50. You hand the clerk $15 and expect change, but not so fast. The cash register keeps beeping as it computes the taxes on $250 worth of merchandise.

Malloy also wants to slap a tax exemption on services and vehicle trade-ins.

Try this: The legislation also would tax consumers on the original price of a discounted product. For example, the tax would be imposed on the full $1,050 price of a plasma television, not the $850 you convinced the manager to take.

Governor Malloy isn’t about to earn himself any votes with this and several other ugly measures his government is contemplating to deal with the state’s huge budget shortfall. According to Connecticut Budget Chief Benjamin Barnes, “Every single one of those, however many, 20-odd taxes is a new tax and it sucks. I don’t know how to hide it. These are new taxes.”

Food items would continue to be exempt from sales tax in the eastern state, but Connecticut would still see a projected $92 million increase in revenue over two years.

In short, Malloy wants to tax you on money you don’t spend.

Andrea Woroch

Andrea Woroch is a nationally-recognized consumer and money-saving expert who regularly contributes to leading national and regional news stories. She has appeared on NBC's Today Show, Dr. OZ, Good Morning America, FOX & Friends, MSNBC, CNN, ABC News with Diane Sawyer, and been quoted in New York Times, Wall Street Journal, Money Magazine, Kiplinger Personal Finance, Better Homes & Garden and many others. Andrea also enjoys writing articles for various personal finance and lifestyle websites and blogs. Andrea is passionate about sharing ideas and tips to help you live on less without having to sacrifice. She says making a few small tweaks to daily and monthly spending is all you need to do to achieve your dreams within your means. Follow Andrea on Facebook and Twitter for daily savings tips and check back for new videos, magazine stories and blog posts all about saving money!

Save for the things that matter

Without giving up the things you love

Want your family’s financial future to feel safe and secure? Download my Easy Family Budget Worksheet and take control of your family’s finances in just 10 minutes!