Hartford - The Democrat-controlled state Senate early Tuesday morning narrowly approved Gov. Dannel P. Malloy's budget for the next two fiscal years that would raise taxes on income, property, corporations, services and retail sales by more than $1.4 billion.

Senators voted 19-17 to adopt the budget. The vote was largely along party lines, with three Democrats breaking ranks to join Republicans in voting no: Joan Hartley of Waterbury, Gayle Slossberg of Milford, and Edward Meyer of Guilford.

Three Democratic senators from southeastern Connecticut, Andrew Maynard of Stonington, Andrea Stillman of Waterford and Edith Prague of Columbia, all voted for the budget.  Sen. Eileen Daily, D-Westbrook, also voted in favor.

The 3:15 a.m. roll call followed nearly 11 hours of deliberations that began Monday afternoon. Republicans spent hours attacking the plan and its tax increases.

Senate President Donald Williams Jr., D-Brooklyn, told reporters going into the meeting that he was confident the budget ultimately would pass with 18 to 20 Democratic votes. The House is set to take up the budget later today.

"We got a budget today that does not have gimmicks. We were able to put together a balanced budget and it's in large part because of Governor Malloy, who had the courage to put a tough budget out there," Williams said.

The budget would close a $3.3 billion deficit that the new Democratic governor inherited from his Republican predecessor. Nevertheless, its package of tax increases would be the state's largest since 1991, when one-term Gov. Lowell P. Weicker Jr. introduced the broad-based income tax.

The Malloy plan also carries a $2 billion question mark: it assumes $1 billion in annual savings and labor givebacks from state workers. The governor's staff remains in talks with unions representing more than 40,000 workers to wring those concessions, and some anticipate an agreement as early as this week.

If negotiations do not deliver the savings to balance the budget, Malloy's plan B could involve large-scale layoffs and cuts to programs and municipal aid. A recent change gives lawmakers the chance to sign off on any changes made to the budget if the governor doesn't obtain full concessions.

The budget would largely preserve current levels of funding to towns and cities. Malloy said he is reluctant to cut municipal funding because it could force local governments to raise property taxes.

Senate Republicans were unanimous in condemning the budget. They warned that the tax increases would overburden struggling families and businesses and drive commerce to neighboring states.

"No budget that calls for the largest tax increase in state history can be considered a good budget," said Sen. Joe Markley, R-Southington.

A Republican amendment to replace the proposal with the GOP's own "no tax increase" budget was voted down along party lines, 22-14. Several other Republican amendments failed by similar margins, including a measure that would have ended longevity pay for state employees.

The budget calls for $1 billion in additional spending cuts over the biennial along with the labor concessions.

Officials project a surplus of $369 million in the budget's first year and $635 million in the second. Democrats said the surplus would go to paying debt, replenishing the state's rainy-day fund and cushioning the transition to more stringent accounting principles. (This corrects the figures in an earlier version of this article.)

"It's the most fiscally responsible budget that is currently pending in the entire country, and he's real proud of it," Roy Occhiogrosso, the governor's senior advisor, told reporters. "He made the cuts he thought he could afford to make while maintaining the integrity of the safety net."

The average taxpayer can expect to pay about $20 more a month once the budget takes effect July 1, Occhiogrosso said, with average defined as couples earning under $100,000 a year and individuals under $50,000. But Republicans argued that the tax increases would be far costlier.

"We're taxing the middle class in this state like never before," said Senate Minority Leader John McKinney, R-Southport.

He criticized Democrats for not ditching Malloy's plan to increase by 3 cents the tax on a gallon of diesel fuel. Democrats decided late last week to cancel the s proposed 3-cent-per-gallon increase on unleaded.

"You increase the cost of diesel, you increase the cost of food, clothing and goods throughout the state," McKinney said.

State Sen. Michael McLachlan, R-Danbury, introduced an amendment to cap existing gross receipts tax on gasoline. That amendment also failed, 22-14, along party lines.

McKinney was angered to learn that Democrats anticipate a $1 billion surplus over the course of the two-year budget. He said that money should have gone to rolling back tax increases.

"That's completely irresponsible," McKinney said. "The governor doesn't want people to know that he's building a surplus because he's using tax increases to do it."

The budget in the Senate retains much of the framework of Malloy's initial proposal he presented in February. But there are some changes.

It would expand from three to six the number of income tax brackets, increasing the top rate to 6.7 percent from 6.5 percent and lowering the level that the rate kicks in.

Individuals with incomes over $50,000 a year and couples earning more than $100,000 would all pay more. Lower rates would be phased out for higher wage earners. The new brackets will be retroactive to Jan. 1.

The sales tax rate would rise from 6 percent to 6.35 percent, and the hotel tax would rise 2 percent to 14 percent. Clothing and shoes under $50 would no longer be exempt from sales tax.

The $500 property tax credit would shrink to $300. The credit would phase out for singles making over $56,000 and married couples over $100,000, and would be eliminated for singles making at least $116,000 and couples $160,000.

The budget establishes a new "luxury" sales tax rate of 7 percent on vehicles costing more than $50,000, boats over $100,000, jewelry over $5,000, and clothing and footwear over $1,000.

The budget would increases by 20 percent the excise tax on alcoholic beverages. A package of cigarettes will cost 40 cents more as the per-pack tax rises to $3.40. Snuff tobacco would get pricier with a tax hike of $1 per ounce from 55 cents.

There would be new taxes on cosmetic surgeries and procedures, including Botox and laser hair removal. Manicures and pedicures will be taxed as well as pet grooming and boarding, limo services, car towing, yoga studios and spa services.

The plan also eliminates exemptions to the 10-percent admissions tax on facilities and events. Beginning Jan. 1, visitors to Dodd Stadium in Norwich, the Waterford Speedbowl and Nature's Art in Oakdale will be charged the full tax.

Some residents will see tax credits. The budget creates an earned income tax credit for low-income workers that would be equal to 30 percent of the existing federal credit.

There would be a temporary, two-year electricity tax imposed on major energy generators. This tax is projected to collect $72 million annually by applying a flat tax of 0.0025 cents a kilowatt hour on energy from nuclear, coal, natural gas and oil sources.

Critics fear the new tax could get passed on to ratepayers at a cost of $1.50 per month to the average household. Still, the tax would be far smaller for the state's sole operating nuclear plant - the Millstone Power Station - than a proposal made by the legislature's energy committee.

The budget would also double the 10 percent corporation tax surcharge.

The governor made several adjustments to his budget in April after finishing his statewide tour of town hall meetings. He ditched plans to eliminate the $500 property tax credit. He also softened the income tax increases on middle earners.

More changes came out of an agreement between Malloy and Democratic leaders in the legislature. The deal dropped Malloy's plans for several new taxes on services including hair cuts, car washes and boat services.

It also kept tax-free week for back-to-school shopping and scrapped a plan for coupons that would have charged consumers a sales tax on the full price of an item rather than the discounted price.

And funding levels to municipalities for the Manufacturing Machinery and Equipment Exemption Program will stay in the budget, although the program would formally end.

Over the weekend lawmakers eliminated a proposed 3-cent increase to the state's 25-cents-per-gallon excise tax on gasoline. But they kept a 3-cent-per-gallon tax increase on diesel fuel.

Other new taxes in the budget

* A 3 percent “cabaret tax” on admissions, food, drink, service, and merchandise at venues that offer live music, dancing, or other entertainment while serving alcohol.

* An “Amazon tax” that would attempt to force some Internet retailers such as Amazon.com to collect sales tax from Connecticut online shoppers.

* A tax on hospitals net revenue

* A 0.25 percent increases in the state real estate conveyance tax. The budget also makes permanent the 0.25 percent base municipal real estate conveyance tax that was scheduled to expire July 1.

** The budget would also provide $300,000 in annual state funding for operations at the Garde Arts Center in downtown New London and $620,112 each year for the Mystic Aquarium.