“HARTFORD, Conn. (WTNH)–Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years. $2.2 Billion deficit.
“It’s happening because the state of Connecticut depends too much on its wealthy residents, and wealthy residents are leaving, and the ones that are staying are making less, or are not taking their profits from the stock market until they see what happens in Washington.
It’s been ten full days since the April 18th tax filing deadline, and workers at the state tax department are still processing returns coming in the mail. Even though about 90 percent of all Connecticut residents file electronically, many still send their checks for taxes due in the regular mail. It now looks like expected revenue from the final Income filing will be a whopping $450 million less than had been expected….
This detail is especially important:
Governor Malloy added, “The reality is that in Connecticut we get most of our money from very few people and that can produce some very wild swings.”
It is narrowly true that “the rich don’t pay their fair share.” They pay just about everyone’s share. My thanks to Democratic Governor Malloy for admitting this. Can he telephone Jerry Brown please?”