Word is our Connecticut state government budget is coming up short by a few dollars. Well actually about 200 million dollars. This after our financial geniuses in the State Legislation followed the recommendations of our chief financial wizard, Governor Dan Malloy and passed the largest tax increase in state history. How can this be?
The Governor that raised taxes and put taxes for the first time on nonprescription drugs, clothing under $50, manicures, pet grooming and even increase the burden when your car breaks down with taxes on car towing now tells us we are not contributing enough. When asked about the budget shortfall he characterized the problem as “basically a revenue problem”. He seems to want to blame his deficit budget on a weak economy that could be solved if there is an upswing in the state’s economy.
Don’t you just have to wonder if the deficit has anything to do with excess spending? After increasing taxes the addiction to State spending has continued unabated. Even the political leaders in Coventry this year got the message and produced a budget without a tax increase and are not looking at a significant budget deficit like our State is facing.
Could it be that the State tax increases actually contributed to the short fall in the budget projections? Could we have avoided this problem if we only read and applied what we learned in our own studies? Have taxes caused many people with significant money to flee Connecticut for a lower tax environment? According to one report the answer to all of these questions is, YES!
Now that is hard to believe but the facts are there and the numbers don’t lie. Connecticut is heading down the wrong path when it comes to estate taxes. The State studied the issue then ignored the findings and took action that would worsen our economic strength. How’s that for an approach to the issue?
If you want to read the details provided by the American Legislative Exchange Council below is a link to their report entitled, Rich States Poor States. When you get to the site click on the picture of the report to view a PDF file and turn to page 44. There is a half-page dedicated to Connecticut’s study of the estate tax and the impact of action taken under Governor Malloy.
After reading the report you may have to wonder, just what were they thinking or maybe were they thinking when they voted to expand the tax? Just why did we really raise those taxes?