Wednesday, March 23, 2011

Why Don't You Just Cut Spending In Hartford?

I do not know, has this concept been tried in Hartford? Has Mr. Malloy and his fellow Super Democratic Majority considered cutting spending rather than raising the following taxes:
Income tax: Increases income taxes on individuals making more than $50,000 a year and couples making more than $100,000 a year; increases the highest income tax rate from 6.5 to 6.7 percent; eliminates the 3% bracket on an individual’s first $10,000 in earnings and a couple’s first $20,000 for those making more than $56,500 and $100,500, respectively; expands the number of brackets from 3 to 8.
Sales tax increase: Increases the state sales tax from 6 percent to 6.25 percent and to 6.35 percent at retail locations.
Sales tax expansion: Applies the sales tax to now-exempt items such as hair cuts, car washes, and clothing and footwear that costs less than $50.
Eliminates Sales Tax Free Week
Property tax credit elimination: Eliminates the existing $500 property tax credit for the middle class.
Cigarette tax: Raises taxes on cigarettes by 40 cents a pack, from $3.00 to $3.40; increase tax on snuff from 40 cents to $1 per ounce; increases tax on other tobacco products from 20% to 50% of wholesale price
Alcohol tax: Raises taxes on alcohol by 20 percent (tax on distilled spirits goes from $4.50 a gallon to $5.40; tax on beer goes from 20 cents a gallon to 24 cents; tax on wine goes from 60 cents a gallon to 72 cents)
Gas tax: Increases the state gas tax from 25 cents a gallon to 28 cents a gallon; and diesel fuel from 26 to 28 cents a gallon.
Earned Income Tax Credit: Increases state spending by more than $100 million though a new, negative income tax of up to $1,700 for low income households that earn less than about $21,500 a year from their jobs.
Death Tax: Lowers the estate tax exemption from $3.5 million to $2 million, making more of an estate subject to the estate tax, which starts at 7.2% and rises to 12%, over and above the federal death tax.
Hotel tax: Increases the sales tax on hotel stays from 12 percent to 15 percent.
Corporate tax: Extends a 10 percent corporate profits tax surcharge on large businesses for two more years; establishes “throw back” rule expanding their income subject to state taxation.
Luxury sales tax: Applies an additional luxury sales tax of 3 percent on clothing over $1,000, jewelry over $5,000, vehicles over $50,000, and boats over $100,000.
Driver’s license: Increases the driver’s license tax from $66 to $72, good for 6 years ($1 a year increase).
Car registration tax: Rises from $75 to $80 biennially.
Care rental tax: Rises from 8 percent to 9 percent.
Insurance premiums tax: Increases the insurance premium tax from 1.75% to 1.95%.
Health facilities: Raises taxes on hospitals, nursing homes, and intermediate care facilities for the mentally retarded, in an effort designed to trigger federal reimbursements.
Energy tax: Establishes a new tax of 2/10ths of a cent per kilowatt on electricity generated in Connecticut , with a special interest exemption for favored “green” energy producers.
Real estate conveyance tax: Makes permanent a .25% real estate tax and expands an optional conveyance tax.
Cabaret tax: Creates a new cabaret tax of 3%.
Admissions & Dues Tax: Eliminates exemptions from the 10% tax on admissions to certain places of “amusement, entertainment, or recreation” (eg, New Britain Rock Cats home games, events at the Hartford Civic Center ).
Boat tax: Taxes boats at a statewide rate of 20 mills.
Airplane tax: Taxes airplanes at a statewide rate of 20 mills.
Film Tax Credit: Decreases tax credit transferability to 50%, then 25%, against the corporate tax.
Sales Tax Exemptions Eliminated
Pet grooming services
Automotive storage
Boat services (docking, storage, cleaning, repair, tow)
Packing & crating
Car washes
Automobile road and towing services
Limousine services (with driver)
Labor charges -repair of small aircraft
Clothing and footwear under $50
Non-prescription drugs
Manicure and pedicure services
Eliminate trade-ins exemption for auto vehicles
Eliminate exemption for coupons, discounts, trade-ins
Airport valet parking services
Cosmetic surgery
Yoga Studios
Cloth and fabric purchase for non-commercial sewing
Hazardous waste removal
Eliminate exemption for solid waste to energy facilities
(Cited From The Federation of Connecticut
Taxpayer Organizations, Inc. Susan Kniep, President

I do not know I guess it much more fun just to raise taxes in Hartford rather than face the economic reality that higher taxes would further inhibit economic growth and job creation in the state. It will continue to worsen the business climate in the state. It will continue to accelerate the young people leaving our state for better economic opportunities elsewhere. It will continue the politics as usual which the Super Democratic Majority embraces. I do not know how higher taxes solve anything at all. Just more of the lies of Hartford.

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