A Connecticut paper that has never met a tax increase in did not approve breaks the news gently. So gimmicky is Governor Dannel Malloy’s
budget that it puts the editorial board in mind of Mr. Malloy’s predecessor,
former Governor Jodi Rell, whose budgets – all of them passed by the Democratic
dominated General Assembly – relied heavily on such gimmicks as moving red ink
into future budgets, excessive borrowing to balance ordinary expenditures, and
other sleights of hand that, Mr. Malloy said in his first campaign for
governor, were exceedingly dishonest.
This year, the paper chides, “Now, pushed into a corner by a
lag in tax revenues, Mr. Malloy and the majority Democrats in the General
Assembly are using gimmicks of their own in passing what they say is a
balanced budget for the fiscal year that begins July .”
The post-election year will open with a bang of a deficit --
$1.3 billion or more. That is the amount Mr. Malloy and the Democratic
dominated General Assembly must wring out of the first year of Connecticut’s
biennial budget if Mr. Malloy hopes to keep his “no new taxes” pledge, or …
Or what?
There are only two ways to discharge a deficit, if one
abjures the usual gimmicks used in the past to balance Connecticut’s books:
Either you raise taxes, or you cut spending.
For purposes of re-election, Mr. Malloy has several times
insisted he would not balance the books through tax increases. Funny how all
politicians turn into former President George H. W. Bush – “Read my lips. No
new taxes” – when the middle class, heavily burdened with the largest broad
based tax increase in Connecticut’s history, is about to march to the polls.
Mr. Malloy already has played his “shared sacrifice” card.
To be sure, the shared sacrifice of unionized state workers was not quite as
burdensome to unions as was Mr. Malloy’s “shared sacrifice” tax increases to taxpayers,
which is why, come to think of it, former state Senator Edith Prague chastised union
leaders for balking at the deal -- a very good one for unionized state
employees -- Mr. Malloy held out to SEBAC during negotiations prior to the
signing of his first budget. Mrs. Prague said at the time that union leaders
would be nuts not to have accepted Mr. Malloy’s best offer, which included
salary increases of three percent nine years out. After some knuckle biting,
the unions supinely accepted Mr. Malloy offer. They would have been nuts to
reject it.
The tax increase card already having been overplayed, Mr.
Malloy was under pressure this time around to promise, several times, that he
was done increasing taxes. He had strained himself boosting taxes on nail salon
owners during his first year in office. Taxpayers had sacrificed enough. This
leaves Mr. Malloy with only one card remaining in his hand – multi-billion
dollar spending for each of the next two years. Projected deficit figures are
brought to us by the same Malloyalists who had recently calculated a surplus of
half a billion dollars, a figure quickly whittled down by reality to a little
over fifty million.
Recent polls do not indicate a sunny re-election effort by
Mr. Malloy. A Quinnipiac poll conducted between February and March found 29
percent of voters approving Mr. Malloy’s handling of taxes while 63 percent
disapproved. On his handling of the economy and jobs, 33 percent approved while
60 percent disapproved, while on his handling of the budget, 37 percent
approved while 53 percent disapproved.
A week before the Republican nominating convention, Mr. Malloy
unfurled his “no new taxes pledge” once again: "I do not believe we will
do anything but cut taxes for the foreseeable future."
The “foreseeable future” will pass by Connecticut ears like
a shot. If there is in Connecticut one
editorial writer, one political commentator, one union leader or one much
plucked taxpayer who sincerely believes that Mr. Malloy will wring out of the
hides of state workers the entire future multi-billion dollar state deficits,
that person, now carefully concealed behind then flower pot, has yet to show
his head. Nearly everyone in the state who thinks seriously about budget
deficits “gets” the gubernatorial wink: “No new taxes” -- until the big spenders have all
been re-elected.
The rational for raising new taxes in the foreseeable future will be what it has ever been: Despite years of throwing tax dollars in their
direction, the poor are poorer. And besides, Connecticut’s huge and ungovernable
dispensary of tax dollars cannot afford to lift the debt burden all by its
lonesome self.
Those who have not already left the state for greener pastures
elsewhere would be wise to hit the bunkers and prepare for SHARED SACRIFICE II.
Comments