The Hour is reporting on the legislative outlook as expressed by varying state legislators at a Norwalk Chamber of Commerce breakfast conference. The views fell along a typical tax less/spend more philosophy.
Asked what value the state’s residents derive by paying high taxes, state Rep. Lawrence Cafero, R-142, Minority Leader, called the tax burden in Connecticut a “sad fact.”
In addition to the amount of taxes paid, Cafero noted that in a ranking by Expansion Management Magazine on the “business friendliness” of the country’s 50 state legislatures, Connecticut ranked last, as well.
“We are sending a message,” said Cafero, and the message is, “don’t come to Connecticut, don’t expand your businesses.”
Cafero said members of the General Assembly must collectively change their mindset into realizing the spending they authorize affects the amount of taxes paid, and the level of taxation affects the quality of life in Connecticut. Otherwise, he said, “we will be heading on a downward slope.”
State Sen. Bob Duff, D-25, Majority Whip, said he thought one reason for high taxes in the state is because its citizens demand a lot of services and a “quality of life that is second to none.”
Duff said in recent years the legislature has improved its accountability of spending, “making sure we’re getting the most bang for our buck.”
Disagreeing with Duff, state Sen. John McKinney, R-Newtown/Fairfield, said taxes are high “because the legislature doesn’t know how to say no.”
McKinney, the Senate Minority Leader, said with the economy turning sour, every family and every business in the state is trying to do more with less, “but we don’t do that in Hartford, and it’s time we had a change.”
State Rep. James A. Amann, Speaker of the House, said the comments by the other panelists offered too much doom and gloom.
Mentioning what he sees as positive developments in state government, Amann said the legislature has produced balanced budgets the last four years with minimal tax increases.
There is a way to objectively look at whether Connecticut, as State Senator Bob Duff says, is delivering services that provide a quality of life second to none; or as State Rep Larry Cafero says, Connecticut is heading down a downwards slope.
That objective look is to see where young people are choosing to live, work and play. On that measure, Connecticut is look like many of its graying New England neighbours. Connecticut is losing out to other states where services that matter to young entrepreneurs and workers matter. The Connecticut legislature has neglected transportation infrastructure, information technology infrastructure and communication infrastructure. The decisions that come out of Hartford reflect 19th century thinking, not 21st century thinking.
Turning around this state economicly is going to take more than the tired old arguments about taxing and spending. However the most innovative legislation passed has been the film credit tax bill, which is spuring economic development, like the recent plan to build the largest studio production facility outside of Hollywood in Stratford. Yet, typing that tax credit to economic incubation and expansion needs more work. Where are the ties to strengthening the Connecticut workforce to engage in the creative arts economy that fuels the entertainment industry? That, admittedly, is just one aspect. The larger issue should be how to get from 169 fiefdoms to regional cost efficiencies. Spend tax dollars if you must, but do it in the way that regional cost benefits and sharing streamline operations and eliminate duplicative efforts. In short, use a business approach to spending, rather than the political bickerfest that we get now.
It’s too bad that our area legislators are focusing on the wrong questions.
source: The Hour, Lawmakers mull state’s high tax burden, April 16, 2008
