[BobNJ1960]

https://www.cbia.com/news/economy/march-jobs-report/

Must do better. But how? This has been a long-term issue, largely due to a poor business climate.

[MrGompers]

Originally Posted by BobNJ1960

My cousin, making about 37k at a area hospital has an income tax liability of $950 with state of Ct. So she would have to spend half her net income on taxable products to have sales taxes equal that. Of course, she spends under $5,000 on such things annually, so if we had a 9.75% sales tax instead of Ct income tax, she would pay $488 in sales tax, or $462 less in CT, versus the income tax.

Ct's income tax is LESS progressive than many states.

I'm only referring to taxing groceries. Which TN taxes at 9%+. That is disgusting, but it shows when a Govt doesn't have an income tax they have to get it from somewhere. Someone making 100k a year isn't going to sweat sales tax on groceries.

I also wonder if food is taxable when its purchased with food stamps. I would guess it is, because it wouldn't be fair to exempt a certain class of people, so that means TN is skimming at least 9% off the top from the food stamp program. Which is supplied by the Fed Govt. TN can't seem to stop taking from from the Feds.

[WouldLoveTo]

Originally Posted by MrGompers

I'm only referring to taxing groceries. Which TN taxes at 9%+. That is disgusting, but it shows when a Govt doesn't have an income tax they have to get it from somewhere. Someone making 100k a year isn't going to sweat sales tax on groceries.

I also wonder if food is taxable when its purchased with food stamps. I would guess it is, because it wouldn't be fair to exempt a certain class of people, so that means TN is skimming at least 9% off the top from the food stamp program. Which is supplied by the Fed Govt. TN can't seem to stop taking from from the Feds.

According to this and other comments I saw via google, they are not supposed to charge tax on food bought with SNAP. TN is not the only state that taxes food that would have this issue. I found an article saying Krogers was illegally charging tax on SNAP items.

In other states like CT, where only prepared foods are taxed, you cannot buy prepared foods with a SNAP card. I had one for a year and couldn't buy hot chicken wings with it.

https://fns-prod.azureedge.net/sites...ice_111412.pdf

Again, I make well under half your stated amount of 100K and I am not sweating sales tax on groceries.

[GeoffD]

Originally Posted by RunD1987

I will admit I don't quite understand CT tax laws. I think in Maine and think it could work here they have a flat tax. However, income is only taxed when you over a certain amount. Think CT should work towards doing away with sales tax or for the interim increase sale tax exceptions such as prepackaged foods and clothes.

What a flat tax does is limit spending. You get the Massachusetts thing where there is enormous voter backlash any time someone proposes to raise the state income tax. It's an overwhelmingly Democratic party-controlled state but it's very fiscally conservative because the voters would boot out any professional politician who supported an income tax hike. There is now a millionaire tax from last year's ballot initiative that changed the state constitution but it otherwise will be a flat tax forever. The Proposition 2 1/2 ballot initiative to limit property taxes from back in the late-1970s put fiscal constraints on towns to push back against union demands. You can't go on strike for higher wages when it requires a special election to vote for a Prop 2 1/2 override. Those never pass so it took much of the power out of the unions. You might get an override for a bond issue for a new school or a new police/fire station but you pretty much never see them to give juicy pay raises to union workers who already get a defined benefit pension and other benefits nobody in the private sector sees.

As I've written elsewhere in this thread, it's now too late. Unfunded pension liability for all those teacher and state worker pensions combined with debt service on the huge state debt in a climate of rising interest rates combined with declining credit rating means taxes are going up. I figure anyone making 5%er income is going to be paying California-level state income taxes. I'd guess a 10% bracket starting around $150K. 2018 will seem like the low tax glory days.

Connecticut isn't alone with this. New Jersey, Illinois, and Kentucky have similar problems. Kentucky is worse since it doesn't have the local economy to tax and cut their way out of the problem.

[RunD1987]

Flat income tax not sales...Yes it is too late for CT to make any changes.

Only opition for CT is to realize need to control spending, refund depleted agencies, lower higher education cost, cap property taxes, exempt sales tax on clothes, and prioritize transportation project's. A risk but a necessity raise taxes driving citizens and business out. Set an end goal when taxes will be done (12 year's).

[JayCT]

Originally Posted by BobNJ1960

https://www.cbia.com/news/economy/march-jobs-report/

Must do better. But how? This has been a long-term issue, largely due to a poor business climate.

As This website notes, the private sector has regained 101% of the jobs lost in the recession. Are you saying our state and local governments should start hiring? Hard to do when you want to lower taxes. Jay

[MrGompers]

Originally Posted by JayCT

As This website notes, the private sector has regained 101% of the jobs lost in the recession. Are you saying our state and local governments should start hiring? Hard to do when you want to lower taxes. Jay

I read the same thing recently in the CT Post I think. It said CT recovered 101% of all private sector jobs since recession of 2008. Govt sector only about 85%, so I dont know what people here are crying about or what the CBIA is crying about.

Do they want to hire more Govt workers ? I thought these guys hated Govt.

[kidyankee764]

Originally Posted by JayCT

As This website notes, the private sector has regained 101% of the jobs lost in the recession. Are you saying our state and local governments should start hiring? Hard to do when you want to lower taxes. Jay

Just because the state regained private sector jobs lost since 2008 doesn’t mean the state is flourishing. It means CT is reset back to zero from negative, which is acceptable but hardly worthy of a boast.

In other news, it was reported nationally that Fairfield County has the widest gap between haves and middle class/have nots in the nation, and that gap is growing faster than any other metro area. That says one of two things: the upper middle class are becoming wealthy, or they’re leaving.

[JayCT]

Originally Posted by kidyankee764

Just because the state regained private sector jobs lost since 2008 doesn’t mean the state is flourishing. It means CT is reset back to zero from negative, which is acceptable but hardly worthy of a boast.

In other news, it was reported nationally that Fairfield County has the widest gap between haves and middle class/have nots in the nation, and that gap is growing faster than any other metro area. That says one of two things: the upper middle class are becoming wealthy, or they’re leaving.

Given that 2008 was considered to be a very good year economically with record low unemployment means that the private sector employment levels are back to good times, not zero.

And as has been posted here several times the number of people earning more than $100,000 a year has increased in Connecticut, not decreased. The increase in the gap between rich and poor is a national trend so it is not surprising to see that happening in Fairfield County. Hasn’t that always been the case? Jay

[BobNJ1960]

Originally Posted by WouldLoveTo

According to this and other comments I saw via google, they are not supposed to charge tax on food bought with SNAP. TN is not the only state that taxes food that would have this issue. I found an article saying Krogers was illegally charging tax on SNAP items.

In other states like CT, where only prepared foods are taxed, you cannot buy prepared foods with a SNAP card. I had one for a year and couldn't buy hot chicken wings with it.

https://fns-prod.azureedge.net/sites...ice_111412.pdf

Again, I make well under half your stated amount of 100K and I am not sweating sales tax on groceries.

They should tax on the same items, no matter how one pays. To not do so is unfair.