Two years ago, I wrote Dan... What Can I Say. So I figured I'd follow up with a second one...
Back then, I complained about the $2.5 Billion and the $1.5 Billion tax increases. But I could never imagine that the deficit would reach a staggering $5 Billion. After tax increases like the ones above, you would think you'd be able to get the fiscal house in order.
But what you didn't count on was the effect such tax increases would have on the Connecticut economy. It didn't grow like it used to. I guess when you tax everything that moves, you'd have to expect that. But you didn't.
So now, we find we are in an even bigger deficit situation than any you have yet faced. And I have no doubt that you and your minions in the GA will still not learn the lesson. You'll end up closing that gap by raising taxes and fees, putting up tolls, and all kinds of other nonsense. The one thing you guys WON'T do is meaningfully cut the budget. And when I say cut the budget, what I mean is LAY PEOPLE OFF. Sure, there will be idiots who talk about how laying off government workers won't be good for the economy. But here is the issue Dan... you're not getting an economic boost by paying those people with my money! The idiot will say, look at all that money they won't be spending. I say, look at all the money I won't be spending when you raise my taxes again! And there are a lot more of me than them.
To those reading this - a desperate plea: Raising taxes will NOT solve the problem. The GA and this, or the next, governor will spend all of it and more. And we'll end up with the largest budget deficit in history yet again. And they will rub their necks, and say "Shoot... this one is BAD" and they will raise your taxes again. And that flushing sound... the sound of people leaving the state will get louder and louder... and the tax receipts will go down again. The Death Spiral as I alluded to in my original post.
Look up the Laffer Curve. The idea is that there is an optimal rate of taxation, and that as you go above that rate, increases in the rate result in LESS revenue to the government. Dan talks about how our Sales Tax is "middling" nation wide, when you take into account local sales taxes. Let's take him at face value. So. Suppose you're shopping for a new washer/dryer. It's $1,200 for the pair. At 6.35%, that is $76. Can you drive to NH cheaper than that, load up the same washer/dryer, and drive home? Probably. If you restock your liquor cabinet while you are there, you save even more. If you smoke, buy a couple of cartons of smokes too. And remember to fill up on gas up there. What a pleasant day! "Middling" might be right nationwide, but when you have a state like NH basically next door, you can't think in those terms.
I assume that the governor and the GA will do the same thing it has always done. And that will continue us on the road to ruin. So brace yourselves for it everyone. Sure, it may not hurt right away, but an analogy comes to mind...
If you boil a pot of water and throw in a frog, he'll jump right out. If you put a frog in a pot of water and bring it to a boil, well, then you got boiled frog. Don't be a boiled frog everyone!
