[BPt111]

"The downgrade by Fitch Ratings Inc., from A+ to AA-, comes about one month after Treasurer Denise L. Nappier warned the General Assembly to adopt a new approach to borrowing or risk slipping further in the credit rating."

"It marks the fourth time Connecticut has faced a downgrade since May of last year. Fitch and S&P Global Ratings downgraded the state at that time, while Kroll Bond Rating Agency did so just two months later."


"Analysts say finances, unless adjusted, will run as much as $2.3 billion in deficit next fiscal year and $2.8 billion in the red in 2018-19."


Another idea state thinking is 6.35 percent sales tax would have to be jacked up to 8 percent, and the highest income tax bracket would soar from about 7 percent to 10 percent. Looney said Democrats don’t plan to offer that idea.

Starting July 1 CT is in 2.3 billion dollars in red The State is struggling on what to cut or raise taxes
CT takes another credit rating hit on Wall Street | HartfordBusiness.com

[Matrix2791]

Originally Posted by BPt111

"The downgrade by Fitch Ratings Inc., from A+ to AA-, comes about one month after Treasurer Denise L. Nappier warned the General Assembly to adopt a new approach to borrowing or risk slipping further in the credit rating."

"It marks the fourth time Connecticut has faced a downgrade since May of last year. Fitch and S&P Global Ratings downgraded the state at that time, while Kroll Bond Rating Agency did so just two months later."


"Analysts say finances, unless adjusted, will run as much as $2.3 billion in deficit next fiscal year and $2.8 billion in the red in 2018-19."


Another idea state thinking is 6.35 percent sales tax would have to be jacked up to 8 percent, and the highest income tax bracket would soar from about 7 percent to 10 percent. Looney said Democrats don’t plan to offer that idea.

Starting July 1 CT is in 2.3 billion dollars in red The State is struggling on what to cut or raise taxes
CT takes another credit rating hit on Wall Street | HartfordBusiness.com

Weren't we at 8% before the income tax got put in? If they raise the income tax any further for high income earners, then will probably see more of the rich bailing from the State. Can't say that I would blame them. I would too.

[Sigequinox]

Originally Posted by Matrix2791

Weren't we at 8% before the income tax got put in? If they raise the income tax any further for high income earners, then will probably see more of the rich bailing from the State. Can't say that I would blame them. I would too.

CT is a POS. Fortunately had two top candidates decline to move here. Saved me from the moral conflict of uprooting a family of 5 from another region of the country (one that's doing very well) to realize they made a gigantic mistake.

[RunD1987]

I rather take a 10% sales tax with exemption on packaged foods, packaged liquid (Soda, Wine, Beer, So Forth), auto sales, and boat sales. A 2.5% used sales tax on goods purchased outside of the State that are more than $5,000 With businesses exempt from this tax. Have EZ Pass tolls. Have no income tax. Have high property tax of 55 Mill Rate or less.

[BPt111]

New projections 2.3 Billion starting July 1, 2017 2.7 billion starting July 1, 2018 3.4 billion in 2019

CT facing new economic challenges in next few years to come the state need new leadership to tackle problem

[BPt111]

Late 2015

“Connecticut is borrowing excessively for operating expenses, swiping the state credit card for daily necessities. And that card is far from getting paid off each month,” Senate Minority Leader Len Fasano has said.

Malloy also has plans to change how the state employee and teacher pension plans work, but it’s still unclear if he will be able to do everything he wants to do in order to extend the payments another 15 years

CT News Junkie | Budget Deficit Estimated At $4.3B Over Four Years

[JayCT]

Kevin Sullivan, the head of the State Department of Revenue, testified before the legislature about the reason for the significant drop in revenue. It apparently is NOT entirely because the wealthy are fleeing the state as some here indicate but more because the wealthy have invested heavily on the stock market in anticipation of an increase and are able to use loopholes to defer taxes. With our new pro-business President, a lot of money was moved to Wall Street investments to hopefully see big gains as the stock market climbs. Still this does not mean we can allow high taxes but does change the discussion a bit in the future. Jay

John Stoehr: Rising income means rising revenue - Connecticut Post

[Matrix2791]

Originally Posted by BPt111

Late 2015

“Connecticut is borrowing excessively for operating expenses, swiping the state credit card for daily necessities. And that card is far from getting paid off each month,” Senate Minority Leader Len Fasano has said.

Malloy also has plans to change how the state employee and teacher pension plans work, but it’s still unclear if he will be able to do everything he wants to do in order to extend the payments another 15 years

CT News Junkie | Budget Deficit Estimated At $4.3B Over Four Years

This is my favorite part right here! It's never in the best interest of the taxpayers.

“We are expecting the governor is going to be aggressively negotiating in the best interest of the state,” Sharkey said Monday.

[Robert137]

Originally Posted by JayCT

Kevin Sullivan, the head of the State Department of Revenue, testified before the legislature about the reason for the significant drop in revenue. It apparently is NOT entirely because the wealthy are fleeing the state as some here indicate but more because the wealthy have invested heavily on the stock market in anticipation of an increase and are able to use loopholes to defer taxes. With our new pro-business President, a lot of money was moved to Wall Street investments to hopefully see big gains as the stock market climbs. Still this does not mean we can allow high taxes but does change the discussion a bit in the future. Jay

John Stoehr: Rising income means rising revenue - Connecticut Post

That's the scariest article I've read in a long time. First, the author is a " lecturer in political science at Yale University" so that tells us he knows nothing about economics. Secondly he takes the attitude that everyone's money actually belongs to the state. and if you don't "return" it, you're "gaming" the system. He doesn't say how thew game is played, he admits he knows nothing. Third, he posits approaches that are right out of Bernie Sander's playbook, topped off by a heaping helping of "social justice"--so-called income inequality apparently being the state's biggest problem.

Now we can see why we are in a big mess. If opinions like his take hold, say good night.

[MrGompers]

Originally Posted by Robert137

That's the scariest article I've read in a long time. First, the author is a " lecturer in political science at Yale University" so that tells us he knows nothing about economics. Secondly he takes the attitude that everyone's money actually belongs to the state. and if you don't "return" it, you're "gaming" the system. He doesn't say how thew game is played, he admits he knows nothing. Third, he posits approaches that are right out of Bernie Sander's playbook, topped off by a heaping helping of "social justice"--so-called income inequality apparently being the state's biggest problem.

Now we can see why we are in a big mess. If opinions like his take hold, say good night.

I did not get that impression from the article. I think the author is weak in economics and accounting, and because of this the article is very muddled.

What he is saying is that investors are keeping money in the stock market or investing more money in the stock market in anticipation of a lower tax being passed by congress. I would imagine he is referring to capital gains taxes.

A person only pays capital gains taxes when the asset is sold, IOW any increases on "paper" are just unrealized gains and non taxable.

This could have the opposite effect though since if people start selling stocks/bonds/assets after a tax cut that in itself could drive down prices of those assets.