GOVERNOR RELLS BUDGET BUSTING



Well, we have a new budget plan presented by Connecticut Governor M. Jodi Rell. In her budget address a couple of weeks ago she broke from the Republican philosophy and proposed increasing taxes.

In the Republican camp in Enfield this came as a great disappointment and many at a recent Republican meeting voiced their concerns.

Now, first let me say that all Republicans favor improving education and offering our children the best programs possible. What we do not believe is that more money raised through tax increases is the answer.

Money does not always equal better education is a motto that many hold on our side of the aisle. Yes, it takes money to pay for education, but throwing more money at the system will not automatically improve the learning environment.

Money increased without marked and measured improvements simply means that we will spend more without obligating the system to prove responsible benefits.

As a life long Republican I have always maintained that extreme taxation is depressive to our economy. The best way to attract businesses to our State is to reduce taxes on property and incomes. This allows for more cash flow and stronger budgets.

With Governor Rell budget we will see more businesses leave the State and take the higher paying jobs with them. What will replace the higher paying jobs are jobs that offer low pay and no benefits. It will take three of these new jobs to equal the tax benefit to the State and Local coffers.

Other issues I have with the Governors budget are the breaking of the spending cap and the doing away with the car tax. First, the budget cap was implemented to keep the rate of personal income growth aligned with state spending.

Here is what the Chris Powell wrote in the Journal Inquirer days after the budget address.

“The spending limit amendment, enacted in 1992 to mollify voters for the state income tax that was passed the previous year, meant to reconnect state government's standard of living with that of the taxpayers. The amendment tied the growth in spending to the growth in personal income in the state. Lately, under the weight of ever more pervasive and yet less effectual government, personal income has stagnated along with population. Anticipating that, the amendment requires that any hardship for the public must be matched by economy in government. But for years now government has responded to the public's hardship not by getting more value for taxes but by moving expenses outside the jurisdiction of the spending cap and by exempting more expenses from ordinary democratic review, turning them into "fixed costs," costs that can't be touched, just accepted and paid without discussion. This is contempt for the public, democracy, and the Constitution.”

With spending out growing personal income it means that we make less and spend more on operating our State government.

Then there is the proposal to remove the tax on personal vehicles. On paper this looks like a good move. Who would not want to stop paying taxes on the car they drive? However, it is not a tax cut, but an adjustment on where that money comes from. We will be taking money from one pocket and put it in another pocket, but we still wear the same pants.

The greatest benefactors of this tax proposal are people who rent. The car tax removal allows them not to pay any local taxes that support the services and schools in their town. The burden is placed on homeowners and higher income earners, people who are already paying the most taxes.

In the final analysis I believe that Governor Rells budget plan is the wrong way to go. What we need in Connecticut is true tax relief and efficiencies in government spending.

At the Stokes home we have a spending cap. It is simply we cannot spend more then we take in. If we decided to spend more each year past what we earn it will only be a short time until we face financial disaster. This logic needs to be voiced to the powers that work in Hartford.




Greg Stokes