Saturday, April 21, 2018

The Economic Costs Of Connecticut's New Tolls

Information on new taxes and user fees is always at a premium for Connecticut Taxpayers.  Our elected officials love sending out Connecticut taxpayer funded newsletters and pamphlets before an election hailing all the great things they have done over the years.  For example, Democrat Representative Mary Mushinsky 85th District who has been in office 37 years stated two years ago in her brochure that the state budget was actually balanced (when it was not and has not been).  Mushinsky and her fellow Democrat legislators will vote in favor of new tolls for the state over the next few weeks with little details being given to the public.
The details of the new tolls (as much as I can could understand from the bill and its amendments) should shock any Connecticut Taxpayer.  Connecticut drivers would have one of the most expensive tolled roads in the country along with the highest costs of administering those tolls.  In other words it would be a Connecticut Democrat Party dream come true of this new tax that would cost Connecticut Taxpayer drivers anywhere from $2000 to $5000 a year for the privilege of driving in our state.  Any where from 72 to 112 tolls could be placed along all of Connecticut's roads at a cost of between 10 and 20 cents per mile.  Congestion pricing would take place during peak times.  In my own personal example of my daily commute from Wallingford to Milford if I were to take my normal routes of I91/95 or the Merritt Parkway would cost me around $6 a day for my round trip or an additional $30 a week, roughly $1500 a year.  When I drive to Gateway Community College in New Haven  to teach my weekly class 32 times a year that drive will cost me another $4 round trip or additional $128 a year bringing just my basic commute to work up to $1628 a year not counting any other driving my wife and I do during the year.  My rough estimate based on our current driving patterns will cost another $1000 a year or more bringing my costs of the new toll tax to over $2600 a year.  If I choose not to get an EZ pass and or an automated toll reader for my vehicles I will be charged 50% more for the same tolls.  I wonder how much we will paying to buy these units for our vehicles?
Any road service company in the state will pay thousands more to service vehicles and road calls.  Any transportation company will have massive costs added to their services thus raising the costs of what they charge companies in the state.  UPS and Fed Ex will be adding toll surcharges to their home and business deliveries.  The general cost of living and doing business in Connecticut will increase by around $1 billion dollars yearly.  This figure is derived by $600 million dollars or more in the new toll tax being paid for by Connecticut Taxpayer drivers and businesses along with approximately $400 million in those same costs being passed along through higher prices for all goods and services bought and used by consumers and businesses due to the new toll tax. Businesses will not be able to absorb this new toll tax due to all of the other taxes and high costs of doing business in this state which include high electric costs, high workers compensation costs, and high fuel taxes that they pay already  It will be a vicious cycle of inflation and a much higher cost of living in the state represented by this new toll tax.
The costs to run this program according to the CDM Smith report would be an astounding $157 million per year with installation costs being in the range of $450 to $600 million dollars (all work would have to be completed by union contractors thus increasing the costs of this project).  Who pays for this is unknown as I can not derive this from the bill.  
The next question will be where will all of this new toll tax money go to?  I do not think it will go to road and bridge improvement as other taxes set out to do the same (Connecticut's secret gross earnings tax on gasoline for example) even though this new toll tax is being viewed as the cure all for improving our decaying and deplorable road and bridge system in our state.  The costs to administer this new toll tax are enormous and have to be met before any new revenue is derived. However in my opinion there is no guarantee that any of this money will end up improving our road and bridge systems but will be diverted to the state's general fund slush fund as has been the norm for years now.
Connecticut is an economic decline due to its high taxes.  The new toll tax should further its economic decline even more so than before.  How much more can Connecticut Taxpayers absorb in the cost of living in this state?  How much more can Connecticut businesses absorb in the cost of doing business in this state?
Why would anyone want to vote for any Connecticut Democrat candidate in this upcoming election based on this toll tax?  Connecticut voters really need to understand the economic costs of keeping the Connecticut Democrat Party in power any longer when examining this new toll tax.  Connecticut's economic path is no longer economically sustainable.


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