Skip to main content

Taxes And Spending: How Much?

The most important question to be decided when Gov. Dannel Malloy presents his budget to the legislature in February is: How much? What will the distribution of spending and tax cuts be like?

Mr. Malloy has said often enough, during and after his campaign, that the budget nut – a $3.5 million deficit in each of the next three years -- will be hard to crack. Both spending cuts, generally referred to by Democrats as “painful,” and tax increases, possibly less painful for a Democratic caucus that under the leadership of Speaker of the House Chris Donovan and President of the Senate Don Williams has tended to trim its politics to union interests, are in the offing.

Republicans in the legislature certainly will offer a stiff resistance to tax increases, which are regarded in GOP quarters and many places in the world outside Connecticut as business disincentives. But Mr. Malloy, Mr. Donovan and Mr. Williams may well ask in this regard: How many battalions do Republicans have? In Connecticut, a state that did not follow in the last election a pattern that threw the U.S. House and many state legislatures and gubernatorial offices into Republican hands, the GOP lacks the necessary fire power in the legislature to offer more than polite objections.

Such has been the case with Connecticut’s GOP even in days of yore when Republicans ruled the gubernatorial roost. Republican governors have not often wielded their veto pens in the interests of their party or their dwindling legislative caucus.

So far, the question the Malloy administration has assiduously avoided is: What percentage of tax increases to spending cuts would be acceptable to the Democratic dominated legislature and the state’s Democratic governor? These matters are usually settled, before the budget has been set in concrete, in meetings held between the chief executive and caucus leaders in the legislature that are closed to the public, the infamous “smoke filled back rooms” of muckraking journalists.

A like percentage escaped U.S. Sen. Joe Lieberman as he was being grilled by Dennis House of WFSB’s “Face The State.” House’s rapid fire interrogatories often do not allow his guests time to mull over carefully crafted non-answers, and the truth sometimes comes tumbling out them. Such was the case when House asked Mr. Lieberman “What will the new senate do to cut back on some of the spending?

Citing President Barack Obama’s National Commission On Fiscal Responsibility And Reform, the senator then unscrolled a spiel:

“We’re going to have to methodically cut back spending, and we’re going to have to raise some taxes too… the bipartisan commission came out with a proposal, not adopted by enough members but by a majority, that said we can get ourselves back in balance by a combination of spending cuts and tax increases. Three quarters of their recommendations were spending cuts, one quarter tax increases. That’s probably a good balance… Frankly, we’re going to have to ask more of everybody, if we’re going to get our country back on track and paying our bills. That’s not only the responsible thing to do to protect out kids from an unbelievable tax burden. But it’s the best thing to do for our economy, because it will restore confidence in our markets. I think it will keep interest rates low, and it will allow for a lot of investments in business and job creation. To me, the three goals we [should pursue] are: Get the country moving again, deal with the long term debt of our country, and make America energy independent again.”
The reasonable goals proposed by Mr. Lieberman for the nation are the same as those sketched in rude outline by Mr. Malloy and former ambassador Tom Foley in their recently concluded gubernatorial campaign. Is there a legislator in the General Assembly who would decline to support a workable plan designed to get Connecticut moving again, expunge its budget deficit and pension liabilities, and make the state energy independent?

The coming legislative jihad will be all about the proportion of spending cuts to tax increases. It is a delicate question how the proportion mentioned by Mr. Lieberman in his discussion with Mr. House -- one quarter tax increases to three quarters spending cuts -- will go down the gullets of legislators who have spend a good part of their careers genuflecting in the direction of minimal and temporary spending cuts while promoting permanent progressive increases in the state’s ever burgeoning income tax.

Will they recall George Will’s quip about Governor of California Arnold Schwarzenegger -- that Mr. Schwarzenegger was “the best governor that states contiguous to California ever had.”

Governors and mayors in states contiguous to Illinois, the home state of President Barack Obama, are slavering over the proportions of spending cuts to tax increases proposed by the lame duck Illinois legislature: 66 percent tax increases to 34 percent spending cuts. The scheduled tax increases are supposed to be temporary, a prospect sure to raise a chuckle in states continuous to Illinois, whose mayors and governors look forward to pillaging the city of its workers and businesses.

New Jersey’s governor is indisposed to any tax increases, and Governor Andrew Cuomo of New York  is unambiguous on the matter of tax increases: “I understand the semantics argument. I say no new taxes, period." Mr. Cuomo’s vision for New York’s future involves limiting spending growth to the rate of inflation, consolidating departments and placing a cap on property taxes.

The question before the house is: After Mr. Malloy’s budget is passed by the Democratic controlled legislature, will he be the favorite governor of states contiguous to Connecticut?

Comments

Popular posts from this blog

The Blumenthal Burisma Connection

Steve Hilton , a Fox News commentator who over the weekend had connected some Burisma corruption dots, had this to say about Connecticut U.S. Senator Dick Blumenthal’s association with the tangled knot of corruption in Ukraine: “We cross-referenced the Senate co-sponsors of Ed Markey's Ukraine gas bill with the list of Democrats whom Burisma lobbyist, David Leiter, routinely gave money to and found another one -- one of the most sanctimonious of them all, actually -- Sen. Richard Blumenthal."

Donna

I am writing this for members of my family, and for others who may be interested.   My twin sister Donna died a few hours ago of stage three lung cancer. The end came quickly and somewhat unexpectedly.   She was preceded in death by Lisa Pesci, my brother’s daughter, a woman of great courage who died still full of years, and my sister’s husband Craig Tobey Senior, who left her at a young age with a great gift: her accomplished son, Craig Tobey Jr.   My sister was a woman of great strength, persistence and humor. To the end, she loved life and those who loved her.   Her son Craig, a mere sapling when his father died, has grown up strong and straight. There is no crookedness in him. Thanks to Donna’s persistence and his own native talents, he graduated from Yale, taught school in Japan, there married Miyuki, a blessing from God. They moved to California – when that state, I may add, was yet full of opportunity – and both began to carve a living for them...

Lamont Surprised at Suit Brought Against PURA

Marissa P. Gillett, the state's chief utility regulator, watches Gov. Ned Lamont field questions about a new approach to regulation in April 2023. Credit: MARK PAZNIOKAS / CTMIRROR.ORG Concerning a suit brought by Eversource and Avangrid, Connecticut’s energy delivery agents, against Connecticut’s Public Utility Regulatory Agency (PURA), Governor Ned Lamont surprised most of the state’s political watchers by affecting surprise.   “Look,” Lamont told a Hartford Courant reporter shortly after the suit was filed, “I think it is incredibly unhelpful,” Lamont said. “Everyone is getting mad at the umpires.   Eversource is not getting everything they want and they are bringing suit. It was a surprise to me. Nobody notified me. I think we have to do a better job of working together.”   Lamont’s claim is far less plausible than the legal claim made by Eversource and Avangrid. The contretemps between Connecticut’s energy distributors and Marissa Gillett , Gov. Ned Lamont’s ...