Connecticut: The Power Failure Looking For A Place For a Blackout

 Taxes. Energy. These are important aspects of our economy. They are the lifeblood of any business or municipality And if you live, work or own a business in Connecticut you must wonder why taxes and energy costs are so screwed up in the state. 

Sadly, it has never been any different. As just one example, the primary electric utility for the state (now Eversource) has featured the “convertible legislator” for years and years. This is the legislator or legislative family member who is employed in a prima-facie/incestuous/conflicted status by both a utility and the legislature. This is a criminally punishable offense in many right-thinking states, but not here. Ostensibly there has never been an outcry about this sordid practice as both political parties have had members financially benefiting from this lucrative arrangement. So why should any of them complain?

But you will complain in silence. For years Connecticut's Democrat Party has helped to hammer socialistic taxes and energy policies that have damaged Connecticut's economy. For the record, there was an 28% increase in commercial bankruptcies for 2024, the highest in ten years (https://www.hartfordbusiness.com/article/business-bankruptcies-spike-in-ct-as-uncertainty-hovers-over-economy). Why did this happen? It is a good guess that excessive state taxes and state regulations have forced companies to the point of no return to cease doing business in the state. It is a further good guess that a weak and non-urgent attitude on the part of the sitting state GOP by not demanding both the establishment of the President’s Pennsylvania Gas pipeline along with the removal of the illogical and nonsensical DEEP Commissioner, Katie Dykes, reinforces an acquiescence to continued failed energy policy. And as sprinkling on this sundae of failure, how many Republicans are calling for the extension of the 2017 Trump Tax Cuts, which if not passed will be the death knell for any Connecticut business anywhere. In addition, how many Republicans are advocating for the 100% expensing of capital goods that President Trump is now doing? Seeing this muddled and conflicted posture concerning tax, economic and business energy policy, the only businesses that would dare to come to Connecticut would be those enticed by a juicy Connecticut Department of Economic Development taxpayer-funded secret bribe. And how much more will the remaining Connecticut Taxpayers spend to continue to prop up a failing state economy through various state agencies devoted to "improving" the economy?

Why does Connecticut have such high taxes? Connecticut ranks as one of the top five highest taxed states in the country. "Connecticut‘s tax system ranks 47th overall on the 2025 State Tax Competitiveness Index. Connecticut’s tax code includes all major tax types, and the state has historically ranked among the bottom ten on the Index. Connecticut has one of the most complex and least neutral individual income tax systems in the nation, featuring seven tax brackets with a top marginal rate of 6.99 percent and a recapture provision that eliminates the benefit of lower brackets, effectively taxing all income at the taxpayer’s highest marginal rate. Additionally, tax brackets and the personal exemption are not adjusted for inflation." (https://taxfoundation.org/statetaxindex/states/connecticut/)  And what does Connecticut have to show for these high taxes and where does this money go? To add insult to injury, why can’t such a small state have one, simple flat percentage rate for all types of taxes? This concept is poison to sitting legislators who are addicted to all types of spending and crony-feeding, plus added tax complications create projects for a lot of their contributors and buddies.

While we travel up and down the harbor of failure, Connecticut has a massive state employee system that seems to have no worry for accountability. State employee wages continue to increase and the ability to measure productivity is nonexistent. A type of a Department of Government Efficiency (DOGE) for Connecticut would be helpful in both finding waste in Connecticut's massive state budget and in turn lowering taxes for all. However, we may wait decades for any one legislator to call for the trimming of the state workforce and administration budgets with the serial funding of redundant and unaccountable nonprofits, for after all, favors must be returned.

The failure game in the state is exacerbated with an at all costs "green energy" program that has increased electricity costs to one of the highest in the country, thus placing an enormous burden on both customers and businesses. Even with many homeowners installing the cure-all solar panels on their homes, electric rates continue to rise to economically punishing levels. What is the solution to higher electric rates? You got it! More Legislation! One of the many economically incoherent Connecticut Democrat Party solutions to this problem can be found in Senate Bill 1531 "AN ACT CONCERNING PUBLIC UTILITY TRANSPARENCY AND ACCOUNTABILITY AND PROCEEDINGS OF THE PUBLIC UTILITIES REGULATORY AUTHORITY."  This bill if passed would eliminate any utility company from wanting to do business in the state. Found in the bill: "(5) prohibit certain mergers of utility companies, (6) prohibit a utility company from owning both gas and electric utilities" (https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&which_year=2025&bill_num=1531). Thus, by eliminating competition completely and any incentive to do business in the state somehow energy costs will go down. The state only has two utilities currently, does the state want just one run by the state itself? Who will control said utility? The Democrats? Would the Democrats turn off the power on their political enemies? Of course, the bill itself makes no sense. But then again what the Connecticut State Legislature does each session makes less and less sense for the past 35 years.

There are many free markets solutions that Connecticut could embrace to lower the costs of living in the state. But they would involve dismantling the current political bureaucracy and hierarchy driven by the omnipotent one-party rulers in the state. The state's Republican Party has been non-existent and impact-less with its solutions to these problems and/or have not expressed clearly enough with their own alternatives even with many marketable ideas handed to them. Connecticut's state government still picks its winners and losers daily through their failed economic programs and agencies with little to no result and or accountability to Connecticut Taxpayers.

As the Connecticut Democrat Party continues to rape and pillage the Connecticut Taxpayer incessantly with its failed policies, taxes and energy policies need to be revamped and changed. Rather than the daily bashing of President Trump, legislators could look at his administrations energy policies to see something different that might actually work in reducing costs and creating economic stimulation for the state. But again, if that were to happen the political elite of Connecticut would be toppled and we know that is not acceptable to such elite.

As we discussed last week there are two classes of people in Connecticut playing in a huge macabre game. Them vs. you. And as far as you are concerned, what a mess they have created for you in this rigged macabre game, with no way out.