Sunday, March 11, 2018

Please stay in Fairfield County

City Journal: "Connecticut on the Brink"  (Hat tip: Maggie's Farm).
Connecticut could serve as Exhibit A for the risks involved in trying to run a progressive tax system in an era of high and rising “fixed” costs (entitlements, retirement-benefit costs, and debt service). With each new income-tax hike, the state budget has become more dependent on a smaller number of extremely high earners. In 2015, Connecticut income-tax filers reporting over $1 million in earnings represented less than 1 percent of all filers—but 30 percent of total taxes owed. According to the state’s Office of Fiscal Analysis, revenue growth in FY15 was “relatively flat . . . in large part” because the top 50 taxpayers earned $3 billion less than they did the year before.
It's crazy how dependent Connecticut is on a handful of hedge fund managers in Fairfield County.  Connecticut can't raise corporate taxes again or risk a repeat of the General Electric fiasco and the effects of that last tax hike are still being felt: "MassMutual Will Close Enfield Offices, Sending 1,500 to Massachusetts, 'The Best Place for Us to Grow'"
Massachusetts Mutual Life Insurance Co. said it will spend nearly $300 million in Massachusetts and add 1,500 jobs in Springfield over the next four years, expanding the workforce there to 4,500. It also will increase its presence in Boston, adding 1,000 jobs in the coming years. Massachusetts will give MassMutual a package of incentives worth $46 million.
Enfield is right on the Massachusetts border with Springfield just a couple miles up I-91.  MassMutual had just completed a renovation at the Enfield offices (I pass it on my commute) when they announced they were closing up shop.

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