Senate Bill No. 1 was vetoed by Gov. M. Jodi Rell today.
The bill, which was pushed heavily by Senate President Pro Tem Donald Williams Jr., D-Brooklyn, would have taxed bonuses received by workers at banks that got federal bailout money under TARP, the Troubled Asset Relief Program. The 8.97 percent temporary tax would have applied to those who received more than $1 million.
The bill would have also suspended the business entity tax for two years for businesses with at least one employee and a net income of under $50,000.
Democrats said revenue from the tax on TARP bonuses would have made up for money lost by suspending the business entity tax. Suspending the entity tax would have helped 46,000 Connecticut businesses, they said.