Piscopo Op-Ed: Finally, Tax Freedom Day Arrives in CT
Finally! The day has arrived! Tax Freedom Day arrived in Connecticut on Monday, May 13th.
Tax Freedom Day is the day when Americans stop working for the government and start working for themselves, having finally earned enough money to pay off their total tax bill for the year at the local, state and federal levels. Each year, the Tax Foundation, a Washington, D.C. based nonpartisan, nonprofit group, calculates Tax Freedom Day for all 50 states.
This year, Connecticut’s Tax Freedom Day is the latest in the nation and comes eight days later than in 2012. To put this into perspective, New York ranks 49th, achieving tax freedom on May 6th, while Mississippi and Louisiana both ranked 1st and achieved tax freedom on March 29th.
As a nation, Tax Freedom Day arrived on April 18th. Connecticut residents work three and a half weeks longer to pay taxes than the average person in American does. Not only did Connecticut achieve tax freedom one month later this year than the date for most Americans, but it’s also been the latest tax freedom state for the last five years.
This information is very concerning. It is proof that Connecticut not only has been, but also continues to remain, on the WRONG path. It is absurd that it takes the people of Connecticut to work over five months, just to pay their tax obligation. At a time when families are tightening their budgets, they spend almost half the year working for the government, instead of working for themselves.
Furthermore, it highlights that the current fiscal policies of borrow, spend, tax, repeat, are not working, and will lead to continued future tax increases.
Connecticut taxpayers had to absorb the largest tax increase in the state’s history two years ago, and yet there seems to be no end in sight. At a time when Connecticut taxpayers are carrying the nation’s highest per capita debt, the state is facing a $2 billion deficit over the next two years.
Connecticut has increased its tax revenue by 15% from 2011 to 2012. Less than 1% of that increase was the result of economic growth; the rest came from higher tax rates and one-time revenues.
The Governor’s Office of Policy and Management (OPM) reported last month that the economic recovery of the state is “quite slow” and shows only “minor growth”.
The Tax Foundation reports many of Connecticut’s taxes near the top of their respective categories:
• The country’s 3rd highest combined state/local tax burden
• The country’s 4th highest gasoline tax (which is set to increase by 17% in July)
• The country’s 6th highest corporate income tax rate
• The country’s 3rd highest per capita property tax burden
If that isn’t enough to cause concern, if passed, the current proposed state budget by the majority party looks to increase spending by more than 10% over the next two years, and then borrow $1 billion just to cover operating costs.
This should tell us something about the way our state government is operating. 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?
As a member of the Finance Committee, I continue to monitor the legislature’s budget negotiations and will continue to push for responsible, common sense budget principles.
Click here to read the Tax Foundation’s report on Connecticut: http://taxfoundation.org/state-tax-climate/connecticut