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Middletown, Main Street, Winter, 2018
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In 1990, Connecticut did not have an income tax and Lowell Weicker was running for governor. I was working as a reporter at one of the regional papers and had the chance to ask Weicker about his plans for an income tax.
Weicker had been dodging the income tax issue. His position was clearly inconclusive. He said he would only make up his mind once he saw the budget. It was clear at the time that the state was facing a major deficit. There was a recession.
Weicker got the budget in early 1991 and quickly came out in support in the income tax. There was a major rally in protest at the State Capitol. (
See the video) There were tens of thousands of people there. The only reason I point that out, is that the Republicans promising to eliminate the income tax are tapping into a old and deep reservoir of opposition. The message will be appealing. But the problem remains. The state doesn’t have enough revenue to cover its basic bills.
The golden years of the
casino revenue are over. Our population growth has flatlined to negative, but the state is beginning to see some economic growth. But it’s not enough.
But what happens if you get rid of the income tax? Cut DMV, State Police, Public Works? Municipal aid? Medicaid covers one in five people in the state.
The Republicans, and let’s assume they control both chambers and the governor, will probably try to cut the corporate tax rate and income tax. They will shave them; not eliminate them. They may expand gambling, reconsider their opposition to tolls, and possibility give local jurisdictions the ability to impose a local sales tax to help make up for slashing state municipal aide. (That will do nothing for the state cities, especially Hartford and New Britain, which have no retail.) They will likely force state colleges to raise fees and tuition.
Connecticut’s public schools are ranked 5th best in the nation. One GOP candidate David Stemerman (and I’m not picking on him, just using his example) cites the impact of tax cuts on North Carolina to foster income growth. (Whether one led to the other in NC is an argument for another day.) But NC’s public schools are ranked 39th. It’s a much different place.
Bottom line: Any candidate who says they can cut the income tax has no idea. They are just fishing for votes. At best -- they may make a cosmetic change to the income tax and corporate tax rate, but something else will give.
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