Thursday, May 01, 2008

The Deficit, A Really Inconvenient Truth

Since February, State Comptroller Nancy Wyman wrote in her monthly budget analysis, income tax receipts have been declining. “And, based on current employment reports, I expect this trend will continue throughout the remainder of the fiscal year and will impact July accruals. Current sales tax collection patterns also suggest a shortfall in revenue.”

But never fear, Democrats intend to patch part of the hole with an amnesty program for tax delinquents, a move advocates say could infuse the next budget with more than $100 million in one-time revenue.”

To quote myself quoting former senator and governor Lowell Weicker, father of the state income tax, way back in December 2005: “The eyes of the world and of other states are on us. What have those eyes seen so far? Following the institution of a new income tax, they’ve witnessed a doubling of the state’s budget, which means a doubling of state spending, and a shift in collections from consumer sales taxes to less business friendly income taxes that drive up wages. Even the father of the state income tax, former senator and governor Lowell Weicker, emerged from obscurity a little over a year ago to register his dismay that legislators had so quickly consumed their new financial resources.

“’Where did it all go?’ an astonished Weicker asked.”

Just Remember, you heard it here first.

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