Governor Will Propose Tax Hikes

Governor M. Jodi Rell told reporters yesterday that the latest iteration of her budget would include tax increases:

“I will be looking at revenue after I have exhausted as much in cuts as I can do, but they will be part of it,” Rell told reporters at the state Capitol when asked about tax increases.

The Governor indicated that more details of her tax hikes will be revealed today.

The move represents a decisive break from Rell’s months-long resistance to raising taxes.  The Governor had taken a forceful stand against “revenue enhancements” and promoting the opportunity that Connecticut had to hold tax rates steady while other states were hiking them.

After the Quinnipiac Poll came out last week that showed 71% of respondents favored tax hikes on those making above $250k, some supporters feared that it wouldn’t be long before the “Quinnipiac Queen” caved on the issue.

The Waterbury Republican-American had a prescient editorial on Tuesday that addressed this point:

Soak the rich may be a good political slogan, but it has proved time and again to be an abysmal fiscal policy. All things considered, the state will be fortunate if income-tax receipts this year match last year’s, which is why budget negotiators should be focusing on reducing expenditures to bring them into line with the revenues of reality.

We will see later today how right they were.

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16 responses to “Governor Will Propose Tax Hikes

  1. The words “tax increase” were still dewy on the lips of Gov. Jodi Rell when Don Williams, president pro tem of Connecticut’s Democratic dominated legislature, began to twist the knife in her ribs.

    We are told by the magisterial Hartford Courant, a paper that has become little more than an annex of the Democratic Party, that Don “hailed the development.”

    Said Don, the development “”could mark a watershed moment in the budget crisis that has gripped Connecticut for more than a year. Fiscal reality has finally caught up with Gov. Rell — the same fiscal reality she should have dealt with in January, not July.”

    “For six months Gov. Rell has led the legislature and the public on a wild goose chase — ignoring deficit projections and avoiding the toughest decisions. It is unfortunate that it took the consensus revenue forecasting law to get the governor to finally address fiscal reality.”

    A “watershed” moment for Don is one that allows him to continue to stroke and pet his favored constituencies without having to make “hard” budget cutting decisions.

    Connecticut has seen this mating dance between cutters and spenders ever since the sun rose on its income tax.

    Democrats, reaching for the last jar of peanut butter in a nearly empty pantry – a progressive tax in the rich – call for tax increase to meet ever growing budget needs. A need, conservative columnist George Will reminds us, is a want that is more than 12 hours old. The Republican governor protests. There follows a set-to in the newspapers. Everyone’s hackles are got up. The media calls for “pragmatic” solutions, a little tax increase here, a little spending cut there. Decisions on budgets are absurdly prolonged. The legislative year ends without a final decision of the budget. The two camps theatrically shake their fists at each other across the ideological divide. They huddle together at the capitol’s former smoke filled rooms or in the governor’s residence. Suddenly, there is light; a rapprochement is arrived at. A gesture is made towards budget cutting. Taxes are increased. The chairs on the Titanic are shifted around. Everyone is very pleased with everyone. Kumbaya is sung. The curtain is rung down. Editorials are written praising all for their sagacity.

    This year the Democratic Party has decided to cut spending by eliminating the name of the Department of Motor Vehicles; no jobs will be lost. Shift those chairs around. Republicans, after months of fist shaking, have agreed to modest tax increases.

    We’ve seen this punch and Judy show unfold in the same manner for ages. Republican Governors come and go; legislatures come and go. But the show never varies, and apparently people never tire of it. The audience leaves entertained, but poorer than they were when the curtain was rung up – because, shelving all the rhetoric, they are paying for the show.

    Bottom line: The state is in dire financial straights, with none to pilot it out of danger. It needs a new script, and it will never get one from the old actors.

  2. It’s a mistake I hope someone gets in there and saves her from this, it’s not good.

  3. Well said Don. This just proves to the Dems that they don’t have to do their job; but simply hold out long enough, and the governor will cave. And this is how the left moves their agenda forward; incrementally…chipping away as their opponents, seeking the mantra,”can’t we all just get along?”, surrender inch by inch under pressure. Surrendering principle to pragmatism is how liberty dies. Whether it’s long and drawn out, or a sudden onset, the end result is the same.

  4. Maybe we need more Economic Developement as in New London?
    And Newsbusters today askes why the Kilo case is not getting more attention in the main stream media….

    http://newsbusters.org/blogs/tom-blumer/2009/07/30/four-years-after-kelo-ruling-now-barren-area-still-needs-springboard

  5. Well said Don. This just proves to the Dems that they don’t have to do their job; but simply hold out long enough, and the governor will cave. And this is how the left moves their agenda forward; incrementally…chipping away as their opponents, seeking the mantra,”can’t we all just get along?”, surrender inch by inch under pressure. Surrendering principle to pragmatism is how liberty dies. Whether it’s long and drawn out, or a sudden onset, the end result is the same.

    That would be true if she “caved,” however Rell is denying that she caved.

    According to Rell herself, the reason why she is proposing tax increases is because she believes that she had cut as much as she can. The Stamford Advocate has an article about her saying that.

    “I believe that I have exhausted the cuts …If that’s the case, then we will do that. I will include them (taxes).”

    Her own words.

  6. I get an RSS feed on my phone with the blog posts here. I’ve never seen this before, but for this one, instead of the text in the message, it just said Xanax about 100 times.

    Strangely, that’s not really off-topic…

  7. AndersonScooper

    The joke is on any and allof you who believed Jodi Rell well she knowingly lied with all those “No new taxes” pledges.

    Of course taxes were going to go up. The were always going to go up. And yes the Governor has known that all along.

    Outside of horrorific job lay-offs, there was/is no way to balance the budget except through tax increases.

    What’s sad is that the Connecticut media allowed Rell to get away with her lies for over half a year.

  8. Choice headlines:

    “CT Democrats Raise Taxes – CT Democrats at Fault”

    “CT Republicans Raise Taxes – CT Democrats at Fault”

    “South Korean Government Raises Taxes – CT Democrats at Fault”

    “Giant Squids Raise Underwater Taxes – CT Democrats at Fault”

    “Massive Earthquake Rocks California – CT Democrats at Fault”

  9. Does anyone have any idea how much the 3% increase we give state retirees get every year cost?

  10. “CT Democrats Raise Taxes – CT Democrats at Fault”

    This one is accurate, let’s use it.

  11. Outside of horrorific job lay-offs, there was/is no way to balance the budget except through tax increases.

    Some of us are still hoping.

  12. AndersonScooper

    ACR–

    If you didn’t buy your cigarettes out-of-state, how much would you be paying annually in cigarette taxes? Also, how much more would the proposed tax cost you?

    CT’s cigarette smokers should start their own lobby. Your treatment hardly seems fair.

  13. Confused451

    According to Rell herself, the reason why she is proposing tax increases is because she believes that she had cut as much as she can. The Stamford Advocate has an article about her saying that.

    I am confused. When the Governor says that she has cut as much as she can, doesn’t she mean that she has cut as much as she was able to while the state Democrats wasted everybody’s time (and actually sat on the budget issue, prolonging it in a successful effort to make the Governor look bad) vetoing the cuts that would hurt their chances for reelection the most?

  14. If you didn’t buy your cigarettes out-of-state

    I don’t dare; should I be employed elsewhere I undoubtedly would and I’d be sure to have them sent in via USPS *not* UPS or FedEx as only the Post Office requires a federal warrant and should a Postal employee tell anyone anything regarding private mail they’ve got bigger problems than you might imagine.

    Illicit smokes flood market

    William Alfaris, owner of Half-Price Variety on Drouillard Road, says his cigarette sales have fallen by about two-thirds in the last six years. “I used to sell probably five to six hundred cartons a week. Now I’m down to 150, 200,” he says.

    The culprit? Contraband tobacco.

    “When I lose a customer for cigarettes, I don’t just lose a customer for cigarettes — he comes in every day for gum, a lighter, whatever,” says Alfaris.

  15. In a heavily regulated market, only the illegal market will reflect real market forces. Than God and the Democrats for contaband.

  16. It’s a mistake I hope someone gets in there and saves her from this, it’s not good.

    Doug, the next time I go to North Carolina, I’ll pick you up some cartons, ‘kay?

    Love,

    Julie

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