Connecticut Democrats’ Tax And Spend Economic Policies Prove Disastrous

May 22, 2017

The fallout from Failed Governor Dan Malloy and his Democrat allies’ failed tax and spend policies continues to prove disastrous for Connecticut’s economy. Despite having some of the wealthiest individuals in the country, Connecticut will be $400 million short in income tax receipts as the state’s budget crisis has caused across the board credit downgrades. As the Wall Street Journal argues, Democrats’ obsession with raising taxes on the people of Connecticut has failed to solve the state’s budget woes.

The Wall Street Journal reports:

“After two decades of robust growth, Connecticut forecasts it will come in $400 million short in income-tax collections this fiscal year, worsening a budget crisis that has prompted all three major ratings firms recently to downgrade the state’s credit rating.

Connecticut’s budget office estimates that income-tax collections will fall in fiscal 2017 for the first time since the recession.

About $200 million of the drop in receipts came from the state’s closely watched top 100 earners, who are the source of an outsize proportion of the state’s revenue. Many of the state’s richest residents work for hedge funds, which have been hurt by a downturn in the industry.

Gov. Dannel Malloy has twice before bet that taxing the wealthy would help solve the state’s fiscal problems. But neither increase resulted in sustained revenue growth, according to his administration, which says it would be a mistake to do it a third time.

“You can’t go back to that well again,’ said Kevin Sullivan, commissioner of Connecticut’s Department of Revenue Services. ‘The idea that there is yet another significant amount, in terms of long-term stability, to get out of that portion of the population is just not true.”

The last seven years of Democrat rule in Connecticut under Failed Governor Dan Malloy and his Democrat allies have proved disastrous for the people of his state. As Malloy’s potential successors have already tried to distance themselves from the failed administration, Connecticut voters will not forget the Democrats’ track record after two terms in the driver’s seat and will hold their nominee accountable in 2018.