Posted on 03/07/2017 8:24:26 AM PST by SeekAndFind
Government finance is now the greatest source of controversy in Connecticut, owing to billion-dollar deficits and an epic debt load that ensures high taxes for many years to come. In national politics, Connecticut is deep blue: Its entire congressional delegation is Democratic, and it hasn’t voted for a Republican presidential candidate in 28 years. But the GOP has recently notched strong gains in the state legislature. Though it’s far from clear which party will prevail, the fight for control of state government will depend on who can better respond to broad public recognition that Connecticut needs a new fiscal model.
Many Connecticut conservatives cite the adoption of an income tax in 1991 as the beginning of the state’s woes. Up to that point, the Land of Steady Habits had an inspired run, poaching businesses and residents from overtaxed New York. Connecticut governor Lowell Weicker, a former Republican who served as an independent, worked out a deal with lawmakers: Government would impose a spending cap in exchange for the tax hike. But the state never fully implemented the former.
No one seriously believes that the state can grow its way out of its fiscal troubles. In four of the last six years, the Connecticut economy has ranked among the five slowest-growing of all American states. Wounds are still raw from General Electric’s announcement in January 2016 that it would relocate its corporate headquarters from Fairfield, Conn., to Boston. State officials are anxious that Aetna, a large insurance company that’s been based in Hartford for over 150 years, might decamp as well. In 2016, the state registered a net decline in population for the third year in a row. Families and corporations are right to speculate over what Connecticut’s fiscal future means for them. Ever-escalating pension liabilities and a structural budget deficit make it seem like only a matter of time before even New York looks like a bargain compared with Connecticut.
RELATED: Connecticut’s Progressive Nutmegs
When Malloy in early February released his budget proposal for fiscal year 2018, he technically made good on promises, which he had been making for months, of no new major tax hikes. But by cutting state aid to most towns and proposing that all localities start paying one-third of their teachers’ pension costs, which are currently a state expense, the budget will certainly lead to steep local property-tax increases if it becomes law.
Not all localities would lose out under the Malloy budget. Connecticut’s major cities stand to benefit handsomely from more school aid and other forms of financial assistance. That is the practical consequence of a redistributionary philosophy espoused by the governor: not only that wealthy households should fund safety-net programs for the low-income, but that affluent towns should send general-treasury support to their poorer urban peers. Malloy says that this is the right thing to do and that a brighter future for Connecticut requires that its cities be stronger.
The erosion of Connecticut’s suburban tax base is a more dire prospect than the continued weakness of its cities.
His urbanist vision is deeply flawed. Small-town Connecticut’s quality of life — the high-performing public schools, the classic housing stock, the opportunities for authentic local self-government — stacks up with that offered by any other American jurisdiction. Up to a point, it’s worth the price of tax bills that are higher than in most other states. At the same time, the suggestion that just one more “investment” would give Bridgeport, Waterbury, or Hartford the vibrancy of Boston or Houston is implausible. The erosion of Connecticut’s suburban tax base is a more dire prospect than the continued weakness of its cities.
What does this all mean politically? Since 2009, the Democrats’ advantage in the lower house of Connecticut’s general assembly has declined from 77 seats to seven. In this past election cycle, Republicans tied the Democrats in the state senate. Nationwide, Republicans claim 25 “trifectas” — control of a state’s governorship and both legislative houses. Within the next couple of years, Connecticut has a shot at becoming the 26th. A change in leadership will be necessary if Connecticut voters are serious about avoiding further decline.
— Stephen Eide is a senior fellow at the Manhattan Institute.
This genius was torn apart by Tucker Carlson last night. Typical Democrap idiot from Connecticut.
[Connecticut governor Lowell Weicker, a former Republican who served as an independent, worked out a deal with lawmakers: Government would impose a spending cap in exchange for the tax hike. But the state never fully implemented the former.]
Classic
A related thread stated more people would leave, but due to falling housing values, they can’t get out from under their mortgages. Sounds like implosion to me.
That blood sucking libs will turn any juicy grape of an economy until they run out of your money, turning the economy into a raisin then raise taxes some more.
The pensions promised for the chance to retain more power must be fed, after all.
See legislature, California.
Government would impose a spending cap in exchange for the tax hike. But the state never fully implemented the former.
Lucy says, “come on Charlie Brown, I will hold the football for you to kick this time”
Any deal that would raise taxes based on a promise of a spending cap is a lie by both parties. They both know there will be no cuts in spending.
I laugh at and ridicule at every opportunity the lunacy of the LIB lunatics. Hahahaha.
cripes...besides income tax, CT also has personal property tax on cars\real estate\personal property
no wonder people are leaving.
Two sisters live in Bethel which is at the upper tip of Fairfield County, Far away from Westport, Wilton, Greenwich and New Canaan. They pay over a thousand dollars a month in property taxes. Guess that bill is going up. A property just sold in their community, they each own their own homes, that is an exact model of one of their homes except it has a swimming pool. It took 18 months to sell!
They are now stuck in Bethel paying over a thousand dollars a month in taxes. Thank you democrats.
And, that’s not even the half of it.
RE: They are now stuck in Bethel paying over a thousand dollars a month in taxes.
Why are they stuck in Bethel? Can’t they move to a friendlier place?
Virginia also has this regressive personal property tax. Buy a new car, and pay a high tax on it every year.
Maybe they can borrow some money from Puerto Rico.
Unlike California, the voting trend in Connecticut is favoring the GOP. The new General Assembly has a tied State Senate, and only a seven vote Dem advantage in the House. A big D loss over the past few years.
The Democrats have seen their vote advantage trickling away but are doubling down on statist policies. I hope that the Connecticut GOP has more spine than their California counterparts and starts to take on the government unions as they did in Wisconsin.
RE: cripes...besides income tax, CT also has personal property tax on cars\real estate\personal property
There was a time ( Before the 1990’s when CT did not even have an income tax ). Guess who introduced the income tax and helped to pass it?
An “Independent” named Lowell Palmer Weicker Jr. ( He was an ex-Republican by the way ).
Weicker ran on a platform of solving Connecticut’s fiscal crisis without the implementation of the broad-based income tax to include the taxation of earned income.
However, shortly after his inauguration, Weicker reversed his position and became an advocate of the tax that he had campaigned against. Liberal forces applauded his political courage and, in their view, his willingness to face reality, while conservative forces were equally quick to denounce him in no uncertain terms as a liar.
So, there you go ... the chickens have come home to roost. It took 25 years, but the long ran has arrived.
Oh they will move but with homes taking 18 months to sell, it will be a long process to sell both and move.
The pendulum here in CA is stuck on the left side.
RE: Oh they will move but with homes taking 18 months to sell, it will be a long process to sell both and move.
Cripes 18 months!! That is an indicator of the UNDESIRABILITY of the community.... just saying.
“They pay over a thousand dollars a month in property taxes.”
Yikes!
I pay $680 a year on a $300,000 dollar house
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