Bates Takes On Connecticut’s Tax Policy
Suzanne Bates had a terrific commonsense editorial on state taxes in CTNewsJunkie. Bates is far from an apologist for Connecticut’s richest taxpayers, and that makes her argument even more salient.
First, she points out that we can’t extract tax dollars from the rich like other states extract oil, gas, etc., because unlike oil wells, the rich can MOVE. She also points out that 38% of Connecticut’s taxes are paid by the top 10% of taxpayers and that a mere 357 families pay fully 12% of our personal income tax.
Perhaps that’s why the state is struggling with tax revenue while our economy overall is in steady, moderate recovery. Maybe some of the top taxpayers in 2010 already moved or are doing six months and a day in Florida.
At any rate, Bates correctly notes out that a short-term gain from boosting taxes on these folks can be disastrous in the long term if they exit the state. Also, most of these folks have S corps, LLCs and LLPs and declare income made by a business on personal income tax returns. They are not trust fund babies! As small business owners, they employ a lot of workers!
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