Piscopo Op-Ed: Proposed Car Tax Repeal Wrong for CT
As one who typically would embrace a proposed tax cut or legislation repeal, some would think my response to the Governor’s proposal to cut the tax on automobiles would be favorable. However, I am vehemently opposed to this plan as its consequences would be damaging to our cities and municipalities, which would ultimately translate to a higher tax burden on the already overtaxed people of our state. And that is not something I am willing to support.
Most troubling, is that our towns would see a short-fall in revenue. The governor’s plan would leave mayors and first selectmen to manage a loss in revenue of $632.8 million. Municipalities would not be reimbursed for this revenue loss. These drastic cuts would create higher local real estate taxes, forcing municipal leaders to shift the property tax burden onto homeowners and businesses.
The loss of revenue to cities and towns means reductions in local budgets that would have far-reaching effects. Cuts to municipal departments, such as police and public works, in addition to programs and services, would follow.
If the proposal to cut the tax on automobiles is passed, Thomaston will see a $1.8 million dollar reduction in revenue. To counter that loss would be to raise our property taxes. The car tax repeal at first blush may sound good, but the unintended consequences make this proposal wrong for the people and the State of Connecticut.
Another major concern is that this tax is a municipal tax. There are plenty of State taxes we should roll back and many we should repeal.
We should immediately repeal the Business Entity Tax, which is a $250 fee for the privilege of operating an LLC in Connecticut. Just the fact that this tax is in place, is a real and symbolic sign that we are an unfriendly state toward business.
Among the taxes that should also be rolled back are the various taxes that were due to sunset or phase out at the beginning of this year. This would be a far better solution to stimulate small business growth and get our economy moving in the right direction.
If you have any comments, questions, or concerns on this or any issue, I want to hear from you. Please call my office at 800-842-1423 or email john.piscopo@housegop.ct.gov.
Stay connected, stay informed: www.cthousegop.com.
State Rep. John Piscopo
76th District
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