Poor Connecticut. The nutmeg state didn’t have an income tax for a long time, but finally adopted one in 1991 because of course the state couldn’t possibly balance its budget without one. And naturally the rate has been slowly rising. The state went from three tax brackets to seven two years ago. But guess what?
Income tax revenue collapses; Malloy says taxing the rich doesn’t work
HARTFORD, Conn. (WTNH)–Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years.
It means the current budget year, which ends in just two months, is now seriously in the red and next year’s deficit has ballooned to $2.2 billion.
It’s happening because the state of Connecticut depends too much on its wealthy residents, and wealthy residents are leaving, and the ones that are staying are making less, or are not taking their profits from the stock market until they see what happens in Washington.
This detail is especially important:
Governor Malloy added, “The reality is that in Connecticut we get most of our money from very few people and that can produce some very wild swings.”
It is narrowly true that “the rich don’t pay their fair share.” They pay just about everyone’s share. My thanks to Democratic Governor Malloy for admitting this. Can he telephone Jerry Brown please?
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