Tuesday, June 04, 2013

Connecticut's False Budget

Hartford's One Party Rule has just passed one of the most pathetic budgets in our states history.  Amid gimmicks, transfers off line of the budget, higher taxes, greater long run deficits-Hartford's One Party Rule calls this a budget.
In reality it is a lie to call this a budget in economic terms.  It is just more tax and spend gimmicks.  And I am shocked that three Democrat Senators actually would vote against what their party dictates for them to do and actually vote against the budget.  Too bad a fourth Democratic Senator did not have the same guts..
Here is the economic reality of this new budget.
First it still increases taxes.  The Secret Gross Earnings Tax on gasoline goes up July 1 by four cents a gallon to make Connecticut have the highest gas taxes in the country.  $300 million in taxes that were supposed to end on July 1 will continue.  Apparently Hartford's One Party Rule has new definitions as to what tax increases mean.
Second it still increases spending.  Spending is up once again by 4%.  It creates an automatic budget deficit for the coming fiscal years.  The unconstitutional move off budget of $6.4 billion dollars to a separate fund is illegal and wrong.  It is one of the most blatant lies that Hartford's One Party Rule has force fed taxpayers.  My economic question to Hartford's One Party Rule is simple-what happens if federal funding ends for this off budget account?  What do you do then?
Third the shell game continues as funds were raided, money being transferred from one account to another.  Why was this done?  It make no sense economically.
And finally since nothing has been done for the $80 billion dollars in long term unfunded liabilities the state owes, we will be in a long term fiscal free fall for future generations.  The state no longer has the taxing capabilities to get out of this long term fiscal obligation with continuing losses in jobs, employers, citizens and tax revenues.  It can not be maintained.
Hartford's One Party Rule has brought Connecticut's economy to its knees.  This budget has helped to seal the coffin that taxpayers must work in.

No comments: