Unlike his previous two-year budget in 2011, which raised taxes by $2.6 billion over two years, Malloy said this latest plan includes no new tax increases.
Rep. Sean Williams, ranking Republican on the Finance Revenue and Bonding Committee, said extending the taxes is tantamount to an increase.
"I would urge you or anybody else to talk to any business owner who has to pay those taxes and I think they would call them tax increases because they plan their investment strategy under what Connecticut tax laws were at the time," he said.
Andrew Markowski, state director for the National Federation of Independent Business, praised Malloy for not raising taxes and proposing to exempt the first $20,000 of the assessed value of vehicles from local property taxes, which Markowski said will benefit small businesses.
"By not including more tax increases the governor acknowledged that Connecticut's budget troubles are not tied to revenue," he said.
But he criticized the governor for not ending the tax on electric generation, which he said will leave in place a costly burden to small businesses.
A top Senate Democrat, Majority Leader Martin Looney, said the decision by the Malloy administration and lawmakers to extend or end taxes depends on economic and fiscal conditions.
"Everything has to be reconfigured based on new realities," he said.