There's a new study done by a group at George Mason University that considers the financial strength of the fifty states and Puerto Rico. Needless to say, Puerto Rico ranks dead last when it comes to fiscal strength; the island commonwealth is essentially bankrupt. More interesting, however, is that Connecticut ranks lowest among all the states. We have the weakest financial set up in America. It's been an amazing transformation over the years.
I've lived in Connecticut for more than 30 years. When I first got here, the state was very wealthy, quickly growing, and with low taxes. We did not even have an income tax. To a great extent, the lack of an income tax was one of the main reasons for our economic strength. Companies in New York City whose executives were paying something like 9% state income tax and 6% city income tax were moving to Connecticut to avoid those high taxes. The truth is that the city of Stamford based its entire renaissance of the years following 1960 on the low tax rates in Connecticut. Then, in the late 1980's, things changed. A low income tax was imposed, and it has been increased and increased to the point where we no longer have any tax advantage over our neighbors. Meanwhile, the level of spending by the state has risen dramatically over time. The Democrats in Hartford have bought the loyalty of state employees by giving them gold-plated pension and other benefits, expenses which now threaten the future of the state itself.
Despite all that has happened, it still seems strange to see Connecticut ranked last among the states. It's like hearing that Switzerland is about to go bankrupt or that Saudi Arabia is running out of oil.
Hopefully, our current mess will be corrected when the next legislature and governor take office.
I've lived in Connecticut for more than 30 years. When I first got here, the state was very wealthy, quickly growing, and with low taxes. We did not even have an income tax. To a great extent, the lack of an income tax was one of the main reasons for our economic strength. Companies in New York City whose executives were paying something like 9% state income tax and 6% city income tax were moving to Connecticut to avoid those high taxes. The truth is that the city of Stamford based its entire renaissance of the years following 1960 on the low tax rates in Connecticut. Then, in the late 1980's, things changed. A low income tax was imposed, and it has been increased and increased to the point where we no longer have any tax advantage over our neighbors. Meanwhile, the level of spending by the state has risen dramatically over time. The Democrats in Hartford have bought the loyalty of state employees by giving them gold-plated pension and other benefits, expenses which now threaten the future of the state itself.
Despite all that has happened, it still seems strange to see Connecticut ranked last among the states. It's like hearing that Switzerland is about to go bankrupt or that Saudi Arabia is running out of oil.
Hopefully, our current mess will be corrected when the next legislature and governor take office.
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