Keith Phaneuf’s article on Dec. 22 states that over the subsequent 12 months, Gov. Ned Lamont has to assist e-book Connecticut’s economic system out of the coronavirus pandemic and shut a massive price range deficit. Phaneuf features out that lots of the governor’s fellow Democrats say these items cannot be achieved devoid of doing whatever thing Lamont loathes: raising state taxes on Connecticut’s wealthiest residents.
His stated reasoning: if taxes are raised on our wealthiest residents they are going to flee the state. Over 10,000 households have incomes far exceeding $1 million a year. expanding the marginal salary tax rate on these residents may with no trouble produce $1 billion in extra income, salary badly vital to shut that huge deficit….in all probability expanding the funding essential to make certain that each Connecticut pupil receives a top quality, built-in training.
The governor is wrong if he thinks a small raise in taxes will prompt any significant flight from the state. research shows that a couple of of our wealthiest residents might be caused to go away. but most, by means of a long way, will selected to stay. The purpose: vicinity still concerns for the wealthy – the benefits of living in Connecticut’s communities a ways outweigh the additional tax they are going to pay. when you’re within the suitable 1% (which in Connecticut contains at least 14 billionaires) paying a bit extra doesn’t in reality cramp your fashion.
Whereas the proper 1% pay just 8.1% of their profits in state and native taxes, the forty% who constitute our core classification pay over 12%. we are soaking the center class, giving wealthy residents a less complicated trip as a result of it.
now could be the time for the legislature to address this problem and flow a greater innovative taxing constitution. It’s the right thing to do. It’s the simply thing. The fair element. That’s plenty stronger than Lamont asking his branch heads to cut back the compensation for their employees subsequent yr as he reportedly has performed.
As Phaneuf aspects out, many, many Connecticut residents are hurting. Badly. Yet our wealthiest residents proceed to do very, very well. They, incidentally, garnered 100% of earnings positive aspects within the state generated on the grounds that the conclusion of the brilliant Recession.
i’m hoping the governor will rethink — and take heed to his fellow Democrats, and to a starting to be coalition of over 15 group/faith-primarily based/labor organizations that are actually planning, together with CT Voices for infants, to post proposed legislations in January to tax the wealthy. simply just a little extra.
Courtney Bourns of West Hartford is co-founder of FairShare CT.
CTViewpoints welcomes rebuttal or opposing views to this and all its commentaries. examine our guidelines and publish your commentary here.