We Need a Better Plan’
In one breathtaking week—and with alarming ease—two legislative committees signaled that growing the size and cost of state government is a higher priority than growing Connecticut’s economy and creating more jobs.
Make no mistake: The combination of unsustainable spending levels and massive tax increases that passed committee, combined with the evisceration of the state spending cap, will do serious and lasting harm to the Connecticut economy and our valued workforce.
What do the supporters of this budget and tax plan think will happen now? That Connecticut will become a more attractive place to do business and to create jobs? That our fiscal condition will actually improve?
The reality is Connecticut’s reputation as a place to do business will worsen, eroding jobs and revenues, and making the service cuts that were proposed earlier this year minuscule compared to what will follow as investment and jobs leave the state.
Connecticut lost population last year—not because we don’t tax enough services or tax rates are too low—but because people with capital to invest went to more favorable locations, and others left to find better job opportunities. Adding more costs onto those who create jobs and those who fill them will only make matters worse.
What kind of state do we want to have? Other states are working to lower tax rates, not raise them. If we continue down this dangerous path we will all suffer for it.
Connecticut can—and must—do better. Now is the time.
We have to break the cycle of deficits followed by tax increases followed by deficits and more tax increases. It is corrosive to the capital and talent we need to add jobs.
The only way to solve Connecticut’s fiscal problems is to grow our economy—to give companies the confidence that their resources will be devoted to creating jobs—not consumed by tax hikes.
The billion-dollar-plus increases proposed by legislative Democrats are far above working families’ ability to pay, and they are far from the only option before us.
The legislature has to come up with a better plan, one with sustainable spending reforms and no debilitating tax increases.
That requires the full legislature—Democrats and Republicans—to take the best ideas from both sides of the aisle and work with the administration to develop a budget that encourages investment in Connecticut.
They can start with sustainable spending reforms that deliver the core services of government in the most cost-effective way—and with a far lower bottom line—so they can build a strategic tax policy that encourages investment in our economy.
This is a defining moment for all of us.
Connecticut can do better.
We have about one month to go in the legislative session, there’s time to turn things around, but everybody’s voice needs to be heard.
Every single person who cares about Connecticut’s future must make their voice heard loudly and clearly that we want Connecticut to be a competitive state.
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.