CT’s Tax Freedom Day is May 9th – later than all 49 other states

The State of Connecticut has the distinction of having the highest tax burden per capita of any state in the nation for the last two years.  As you finish submitting your federal and state taxes for the April 15th deadline, you must wonder if your tax dollars given truly reflect the effective delivery of necessary services in our state – I believe we have fallen short on that promise.  We need to do more to ensure our public transit (Metro-North Rail-Danbury Line) system is efficient and safe.  We also need to balance the necessary social and educational services with common sense fiscal responsibility. CT taxpayers are not getting their tax dollars’ worth of services. We can do better. We need to do better. We will do better with a common sense approach to governing.

When the legislative majority and Gov. Malloy unilaterally forced through a $1.8 billion tax increase including a retro-active income tax and a hike in the state sales tax on Connecticut residents in 2011, one could have predicted a better result for CT residents.  Unfortunately, we remain in a difficult and challenging economic environment with spending rising above our revenue expectations. Governor Malloy has taken our state in the opposite direction of all other states in the U.S. by increasing taxes and making government bigger while others cut taxes and streamline government.

Additionally, CT has the some of the highest taxes on gasoline in the country. Because of these policies, Connecticut residents are paying more than ever. It’s sobering to realize as we pay last year’s tax bill we haven’t yet worked long enough this year to pay the next time around.

According to the Tax Foundation and their calculated figures for this year which show that Connecticut has the latest Tax Freedom Day (tied with New Jersey), or the day of the year when state residents on average have earned enough money during the year to pay their combined state, federal and local taxes, and begin to keep what they earn. Connecticut’s Tax Freedom Day has been calculated as May 9th this year, later than all other states.

When you figure in the state’s poor business climate with businesses closing up shop every day, the situation is much worse. According to the Tax Foundation, Connecticut ranked 40th among all states in having a business friendly tax climate.

The Tax Foundation is a nonpartisan educational organization which exists to give taxpayers information about sound tax policy. They can be found at www.taxfoundation.org.

Connecticut families balance their household budgets on the basic principles of not spending more than they bring home and not borrowing more than they can afford to pay back. Shouldn’t the State of Connecticut do the same?

The state budget is perpetually in crisis, with a projected structural deficit of $1.1 billion for the next budget cycle, according to non-partisan economic analysts. Until we rein in spending, create a stable tax and regulatory landscape and stop passing legislation that fuels Connecticut’s anti-business climate, we will continue to suffer from a lagging economy and shrinking workforce.

Governor Malloy likes to say “Connecticut is open for business” but these numbers prove otherwise.  As more and more people and business relocate out of state the burden will fall even harder on the backs of those of us who remain.  Having the worst tax obligations in the country is not a welcome mat; it’s a red flag in a losing battle for economic viability and tax freedom.