Saturday, April 27, 2019

Can Connecticut Cut State Spending?

The Connecticut Democrat Party seems to have a habitual spending problem.  It can not, will not, must not nor it seems it ever will cut spending in Hartford.  Spending each budget year must go up it can never go down.  Tax revenues in the state continue to be unreliable as the net migration moving out continues daily along with businesses leaving the state thus lowering revenue.  The few new jobs that are being developed are at much lower wages than previous jobs (for example the Amazon warehouse jobs). The progressive/socialist wing of the Connecticut Democrat Party seems to believe that higher taxes will make the state more fair and equitable to those in need.  There is no mention by these same progressive/socialists of the Connecticut Democrat Party as to the excessive tax burden that the Connecticut working middle class must pay year in and year out.
The Connecticut Democrat Party new pitch is an additional 2% tax increase on Capital Gains.  The claim is that these wealthy citizens who receive Capital Gains can afford to pay more in taxes since they are wealthy.  How does the Connecticut Democrat Party define wealth?  Unknown to anyone but themselves.  The net impact of this yet new tax besides all of the other taxes they have proposed is to continue the net migration of population out of the state and to see yet even more businesses moving out of state.  It seems to be a never ending cycle.
High taxes negate economic growth.  However for the protected individuals of the Connecticut Democrat Party this scenario does not exist since they feed off the Connecticut Taxpayers never ending supply of money.  Wealth formation is gained through the Connecticut Democrat Party and their deals and subsidies to those politically connected with them.  Rules and laws do not apply to them.
Cutting the bloat of Connecticut state government would have been the first step in the road to economic recovery for the state.  Why couldn't Governor Lamont instruct the "exceptional" newly appointed state commissioners that all received raises in their salaries to find a way to do more with less money by cutting spending in their agencies by 10%.  This would have been a serious step in restoring the state's finances.  But instead Connecticut Taxpayers are force fed the same stale rhetoric of new and higher taxes along with now tolls will once again solve all of the state's fiscal issues.
New taxes and tolls does not improve Connecticut.
It has not and it will not.
Cutting state spending fails always on deaf ears. 
Connecticut Taxpayers must again be the serfs and economic slaves to the Connecticut Democrat Party.
Cut spending.  No Tolls.  Connecticut Taxpayers have had enough.

Saturday, April 20, 2019

Another Connecticut Tax For Drivers-Another Connecticut Double Taxation

Connecticut Democrats in their quest to tax any conceivable economically productive activity to obtain tax revenue are looking at a proposal to tax vehicles when you trade them in when purchasing a new vehicle.  Thus when you purchase a new or used vehicle in Connecticut you pay a 6.35% sales tax and now when you sell and trade in your vehicle you will pay again sales tax.  Thus another double taxation for Connecticut Taxpayers.   The purpose of this tax is to raise depending on the analysis $250 to $300 million dollars in new tax revenue.  The revenue will be used obviously to increase spending on state management and union salaries, benefits and pensions.  An example of this increase was seen this past week when an 11% pay increase was voted in for all newly unionized tax attorneys that were formerly managers who work for the State Attorney Generals Office.  Another example of where this revenue might go is towards the pay increases that were received by all of the newly appointed State Commissioners.  Yet another example of where this new revenue may go is to the State Union employees and their upcoming longevity payments on July 1. 
The costs of this new car tax will make drivers think twice on trading in their vehicles and will probably add anywhere from $635 to $2000 on the costs of purchasing a new vehicle in the state.  It will in both the short and long run decrease car and truck sales in the state while further increasing the costs of driving in Connecticut which are already influenced by high gasoline taxes, property taxes on the vehicles you own and the possibility of one of the highest amount of toils and toll rates in the country.
All this while Connecticut continues to remain at the bottom or last in all economic categories in the country with net migration and loss of population on a yearly basis.  All this while Connecticut has $100 billion dollars in short and long term debt along with unfunded liabilities.  All this while there has been no conversation in the state legislature to cut spending of any sort this session.
Thus we will see yet another Connecticut tax for drivers that is yet another Connecticut double taxation.  All this while Connecticut falls further into a never ending cycle of an economic recession fast approaching an economic depression.

Saturday, April 13, 2019

The Double Taxation Of Tolls

Tolls create a double taxation for Connecticut Taxpayers and businesses.  Toll taxes will only be passed on to consumers who are already paying toll taxes.
Here is an example.  A heating oil company must deliver oil to its customers.  For a heating oil company located in Meriden they must drive to the storage areas of New Haven to obtain their heating oil wholesale.  The drive to New Haven will entail them driving on I-91 and possibly I-95 depending on what exit they use to pick up the oil.  The tolls round trip for this may range from $4 to $8 depending upon time of day and what the state will actually charge for the tolls.  If this company must pick up heating oil on an average of 500 times per year this will increase their costs by $2000 to $4000 per year.  The heating oil in some cases will have to be transferred to other trucks and then sent out for delivery.  Based on scheduling and the needs of its customers the heating oil company will then route its truck or trucks to deliver their product.  Tolls because of their locations will be encountered by the heating oil company delivering to their customers.  Based on the number of deliveries this now adds an additional $2000 to their costs yearly depending upon time of day and what the state will actually charge for the tolls.  Taking a high end figure the heating oil company now has an additional $6000 in new costs yearly in the form of the toll taxes that have been implemented.
The heating oil company also must add an additional sales tax to the cost of their deliveries which is 6.35% that is passed to their customers due to this new tax.  The costs of tolls adds an additional five cents per gallon to the price of the heating oil.  Also the state has passed a "green tax" of roughly ten cents a gallon to heating oil to penalize them for supposedly being a non clean fuel.
The customer comes home from work from his or her job.  Their commute from Meriden to Milford now costs them an additional $20 a week or $80 per month due to the toll tax they must now pay.  They have received the bill for their heating oil delivery of 200 gallons.  Last month before the tolls and new taxes on heating oil they paid $2 a gallon or $400 for 200 gallons.  This delivery cost them $457.31, 200 gallons at $2.15 per gallon/$430 for the heating oil plus $27.31 for state sales tax on the bill.  Because of the supply and demand for heating oil the prices will fluctuate.  The customer now must come up with an additional $57.31 per month for the heating oil.  They also must come up with an additional $80 per month for the costs of the tolls.  The customer will not be getting a raise this year either due to the additional state taxes that the business they work for has to pay.
The customer must now cut costs a minimum of $137.31 per month due to the increased costs of tolls and heating oil.  However the costs at the grocery have increased dramatically also due to the new toll tax as all shipments to Connecticut have gone up with some trucking companies refusing to deliver to Connecticut due to its high taxes and tolls and also some trucking companies in the state have gone out of business since they can not make a profit here any more due to the high tolls and taxes.
The customer must now figure out a way to cut back to pay what they estimate is the additional 25% more they are paying at the grocery stores weekly for their food.  The customer figures now they have to come up with an additional $400 a month more between the toll tax and higher costs for all consumer goods they must purchase to live here in Connecticut.  They have no alternative but to eliminate their 401K contributions at work.  They have no alternative to lower their thermostats in their houses to try to save on heating oil.  They no longer spend any money on any form of entertainment or eating out.
After a year of tolls and increased prices Connecticut's economy is in a massive recession with huge budget deficits since toll revenues are not coming in at what was estimated and most non discretionary consumer spending has stopped thus lowering state sales tax revenue.  The Connecticut Democrat Party thus decides to raise tolls even higher and all other taxes even higher to make up for the shortfalls.  By the way the rest of New England is experiencing economic expansion and prosperity at this same time due to its lower taxes.
The economic example that I have described will become economic reality if toll taxes are passed.  Tolls are a form of double taxation. I urge you to contact your State Senators and State Representatives to express your concerns and opposition to tolls in Connecticut.  No tolls are needed and will damage even more a damaged state economy.  Enough is enough.

Saturday, April 06, 2019

Connecticut: No Tolls Today, No Tolls Tomorrow, No Tolls Ever

No tolls.
Not today, not tomorrow nor ever in Connecticut.
The Connecticut Democrat Party is trying to manipulate the debate on tolls.  But in my opinion they are losing.  The reason is that there is a massive amount of legal Connecticut Taxpayers who see the scam that these new tolls are and will become.
The new tolls program has no transparency.  Trying to get any information on them is limited and not readily given out to the public.  We are just told that they are needed, shut up and accept them.  Just like the state income tax in 1991.
The new tolls are needed to provide $100 billion dollars in transportation spending according to Governor Lamont.  Where does he develop this figure from?  What projects are being added and or repaired?  How many years will it take to achieve $100 billion dollars in toll revenue after expenses?  Ten years? Thirty years?  100 years?  Doesn't Connecticut already have $100 billion dollars in short and long term debt along with unfunded liabilities?  Is that economic issue going to be addressed or does it now mean we will have $200 billion dollars in short and long term debt along with unfunded liabilities?
The new tolls will cost how much to implement?  Connecticut already is at the top in the country for administrative costs to maintain our crumbling road and bridge system thus I will assume this will be the same for the costs of tolls.
The new tolls will cost Connecticut drivers how much per mile?  This figure changes daily it seems.  Will there be congestion tolling?  At what times?  What roads?  With 53 plus tolls being proposed it seems to me there will be massive shifts of costs everywhere and at all times while driving.  Thus you will never know how much it will cost to drive.
 Connecticut already has a massive amount of taxes that Connecticut drivers pay already.  A secret 8.1% gross earnings tax on fuel which equals roughly 18.8-cents per gallon of tax, along with a 25- cent gallon tax equals 43.8-cents per gallon of taxes that drivers pay for each gallon of gas they buy. The 25-cent per gallon tax alone takes in over $505 million dollars in revenue for the state.  Then add all the other state taxes one pays for motor oils, tires and maintenance of their vehicles and you have an enormous cost to operate a vehicle in Connecticut.
Tolls if implemented will only go up rapidly and often.  Bridges and roads will not be repaired.  Toll money will be funneled somewhere in the non-transparent spending schemes of the Connecticut Democrat Party.  The lies will begin just as they did for the state income tax when that was seen as an epic economic failure contributing to the economic downfall of Connecticut.  It is logical to assume that the Connecticut state government has massive spending problems.  Tolls will not solve it.  Cut spending dramatically on management and union salaries, benefits and pensions.  Cut all state agencies budgets by 10 to 15%.  Have these supposedly exceptional Commissioners find a way to save Connecticut Taxpayers monies.  This all falls on deaf ears.
No tolls today, no tolls tomorrow and no tolls ever.