Where We Live: Tax Day
Will Higher Taxes Force the Rich to Leave Connecticut?
When critics say the state shouldn’t increase taxes on the wealthy, they often say that it’ll force the rich to leave Connecticut. So, is it true?
Two new studies show - well, that’s it’s not true at all. That other factors, beyond the tax rate, are what drives people to make decisions about where to live.
Governor Dannel Malloy has been listening to this - and to residents as he toured the state, and has slightly changed his tax proposals to shift more burden toward the wealthiest residents, while giving a bit more of a break to the middle class.
Republicans say it’s a bad idea - they don’t buy the studies about migration patterns, and they think it’ll hurt the state’s chance to negotiate with union workers.
Today, where we live, it’s tax day. So, we’ll be talking tax policy. Including conversation with a ProPublica reporter who’s been following the tax loophole adventure of one of the world’s biggest companies - Fairfield’s General Electric.
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For more information on the studies
Here is more information about and links to the two studies discussed on the program:
http://www.betterchoicesforct.org/node/39
Brief video clips of the researchers
http://www.betterchoicesforct.org/node/40
A Tax Day Reality Check fact sheet, which explains that Connecticut's public revenues and spending have remained lean and stable for decades. The state faces a budget crisis caused by a declining economy and some short-sighted fiscal choices, rather than a problem of overspending.
http://www.ctkidslink.org/pub_detail_544.html
Listener Email from Rob
I wanted to point out that the eventual conclusion of the logic that states must compete with eachother over the wealthy ends up with states perpetually lowering taxes on the wealthy, until their burden goes to zero. This defeats the supposed purpose of keeping them around - that they generate so much tax revenue for the states. I'm curious how people who want to make sure our taxes on high income brackets are lower propose to ensure that states we are supposedly 'competing' with for the privilege of having high-income earners don't simply lower their tax rates in response.
This line of inquiry gives credence to the idea that taxes are actually a double-edged sword. The concept of taxes is one of balance. You must find the level of government services and the matching revenue that results in the best potential outcome of overall well-being. Certainly burdening the majority of low- to middle income earners who have seen little income growth from the productivity gains of recent decades is not a prescription for increasing the overall well-being of the state.
Listener Email from Gordon
The negative impact of taxes is overstated. It exists but not to the extent some would have us believe. The quality of infrastructure, the quality of potential employees, the availability of markets with buyers. These are essential ingredients to grow the economy. As an aside, it is sad SustiNet is on a back burner. It would remove a large expense for business.
The bottom line is we can't talk about tax policy until we create a long term economic policy that is independent of those lobbying for short term advantage. Unfortunately, Washington is not creating long term economic policy and has been absent for decades.
email from Matt
Details on the 4 "tax day" protests of corporate tax dodgers our CT Action Alliance for a Fair Economy has organized today:
New Haven Post Office to Bank of America Branch:
WHERE: Elm St. Post, 206 Elm St., New Haven, CT 06511
WHEN: Mon., 4/18 beginning at 12:00 PM
Fairfield GE Headquarters:
WHERE: 3135 Easton Turnpike, Fairfield, CT 06828
WHEN: Mon., 4/18 beginning at 1:30 PM
West Hartford Bank of America Branch:
WHERE: 4 North Main St, W Hartford, CT 06107
WHEN: Mon., 4/18 beginning at 4:40 PM
Danbury Public Library to Bank of America Branch:
WHERE: Intersection of Main and West St, Danbury, CT 06810
WHEN: Mon., 4/18 beginning at 4:45 PM
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