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.
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