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Sunday, January 07, 2018

Connecticut learns the rich can leave

Tax the rich, feed the poor
'Til there are no rich no more.
--Alvin Lee of Ten Years After
"I'd Love to Change the World"


The state of Connecticut has a problem. Rich people are leaving it in droves, being replaced by poor people. Thus the state is losing the people who pay for services while having to provide services for more people.

The situation is so obvious that even the editorial board of the Hartford Courant noticed.

From the Courant:
Those who moved out of Connecticut from 2015 to 2016 took with them more than $6 billion in adjusted gross income, or AGI. People who moved to Connecticut brought with them only about $3.36 billion in AGI. The total net loss to Connecticut: $2.7 billion. In one year. That was in the top five of all states, regardless of population.
[SNIP]
The average adjusted gross income for all filers who moved out of Connecticut last year was $123,377 — the highest in the nation and far above the state's median income. The average AGI per return for those who moved in was $92,677, or $30,699 less than those who moved out — the biggest difference in the nation. Put another way, those who moved in were not enough in number, or in income, to replace the expats.
The newspaper kept talking about how this was costing the state — as if that $123,377 average adjusted gross income somehow belonged to the state and not those who earned the money.

Indeed, the newspaper said that: "The states that poached the most taxpayers from Connecticut were New York (8,202 tax returns) and Florida (7,944)."

Poached?

Somehow the freedom of movement is gone for Americans  or at least residents of Connecticut.

The newspaper whinged a lot, "It's not that Florida doesn't have its problems — it does. But it has a unique situation: It can prop up most of its state government on sales tax revenues and attract residents by avoiding an income tax."

The sales tax in Florida is 6.8%. In Connecticut, it is 6.35%.

The real problem is Connecticut has this big expensive and likely corrupt state government that "rich" people no longer wish to support.

I suggest Connecticut's state government quit spending as much money, and cut taxes.

@@@

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26 comments:

  1. Florida's gov't probably has its problems, too. But little and corrupt is much better than big and corrupt.

    ReplyDelete
    Replies
    1. And when I buy food at the supermarket here in Florida I pay zero tax. (Tax on prepared food only)

      Delete
  2. When they estimate the AGI of immigrants to the state, I wonder if they include illegals and "refugees"? Bet they don't!

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  3. Dick Blumenthal, before he dicks you.

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  4. I fled Connecticut in 1984 and never looked back....the home of Eli Whitney became very unfriendly towards manufacturing long long ago

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  5. Gotta be bad in CT, REALLY bad, if New York looks like a tax haven in comparison. Holy crow.

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    Replies
    1. Was about to say this. Connecticut is a rotting corpse between NY and Massachusetts.

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  6. CT Resident here - ping agree on the above. I don't have the $ to leave, almost 60 so relocating/job search would be huge issue, and long term medical needs make my staying here for next 10-15 the best option available.

    Not complaining, however... though you can bet if I had the financial freedom to pull out, I would.

    then again... maybe, I wouldn't. State's gotta come to its senses at some point, and they'll need unhyphenated Americans who consider their Oath to have no expiration date (... against all enemies, foreign & domestic...) to stay and form up ranks around.

    the JG

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  7. Even James Comey moved. http://www.townandcountrymag.com/society/politics/a9904151/james-comey-westport/

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  8. The ones who moved to New York probably weren't looking to save on taxes. More likely they figured "if I'm going to be taxed like I'm in New York I might as well actually live there."

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  9. Happening in a lot of states. California being the worst. Heck, ever higher taxes to support illegals and social programs has sent film industry production to areas just north of Atlanta and elsewhere in Georgia (projects are currently being held up waiting for more sound stages to be constructed and equipment to be delivered - a major story that the MSM has no clue about). Silicon Valley companies are looking to relocate much of their operations to Utah and north Texas, while even in Washington state Amazon is looking to relocate most of their headquarters elsewhere.

    The high taxes to businesses as well. Business passes the costs onto consumers. In turn that creates inflation in the area. The inflation particularly hits housing costs. The end result is that qualified, skilled workers - particularly in high tech - cannot find affordable housing in California, Washington state, NYC, and elsewhere. They leave. Now the companies that need their services are being forced to relocate to where those people are moving to.

    As for California, it came out about 6 months ago that one out of every 3 children is receiving government assistance - i.e. money. Not in an area of a city. Not in a poor county. But in the entire state - one of the largest in the USA. Exactly how long can this go on?

    - Ken

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    Replies
    1. It will go on until it can't, just like Venezuela. Unfortunately, Dimocrats run the state and they are running it into the ground. I'm all for California to secede, the sooner the better. - GOC

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    2. Let them secede. Declare an insurrection, bring in Federal troops, occupy the state and declare martial law, arrest the pols in Sacramento and put them in GTMO awaiting trial.

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    3. The problem is that many of those fleeing California, are only fleeing the high costs, not the ideology which caused those high costs.

      Portland and Seattle are full of those couldn't afford to move to SF, but like its policies, and voted accordingly. Which means the rest of the state suffers because of the fools in "SanFran North"

      Delete
  10. The really unfortunate part of all of this is that those people who were 'poached' to other states probably voted for those higher taxes thinking that OTHER people would end up paying them. Having not learned any lessons in all of this, they will vote more taxes in their new state because...WOKE!

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  11. Has anyone noticed the recent Tax Bill that was passed? The one that limits state income tax write offs to $10000? There are going to be a lot of people in high income tax states asking their state and local representatives penetrating questions about what they're paying for and getting in return come the 2018 tax year. This is a freight train coming down the track at 5 mph. It might be slow, but you can't stop it.

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  12. They won't even try to fix their problem until it's too late by denying the problem and then delaying actions to fix it, by which time the second-tier taxpayers leave for lower taxes and better weather.

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  13. Tax flight was what spurred the onset of feudalism. People fled taxes and sought shelter with powerful lords in self contained communities. The Roman emperors, rather than seek the return of people their economy couldn't support anyway passed laws tying those people to their lords while collecting a small tax in exchange from the lords.

    Look for high tax states to try and do everything they can to make mobility difficult.

    If you think about it this may be why you can't change jobs or move to another state wand keep your health insurance.

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  14. It's the mega rich that are bitching about the new tax law. I'm a retired professor living in far northern CA. Closer to OR than San Franfreakshow. I have nearly total control of how much of my retirement funds I withdraw and have taxed each year. I just checked my 2016 tax return and with only standard deductions my Federal tax was only 4% of my gross income and state tax only 0.7%. Screw the rich who are complaining.

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    Replies
    1. You have the benefit of a life long pension, much of which, I assume is tax free for you to be paying only 4%. I am a small business owner and employer in the Failed State of Connecticut and between Federal, state and local I pay over 50% of my income in taxes.

      Delete
    2. Paying for those generous public employee pensions is one of the reasons why California and other bleu states like Illinois are going down the drain. Soon they won't be able to pay your pension, Mr./Ms./whatever gender California retired professor. Your pension won't be propped up by the federal government, hun, because only California and Illinois congresscritters will be demanding that and the rest of the country is going to say "Hell No! Why should we prop these parasites pensions up?"

      What are you going to do then?

      Delete
  15. I'm a small business owner and employer in the Failed State of Connecticut. I don't know a single person who can't wait to leave, myself included. The SALT caps will make it even worse. But I don't blame Trump or Congress. It is the fault of the state and local governments who tax like there's no tomorrow.

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  16. ... but wanting California to secede, just 'cause it's filled with a bunch of leftist/marxist punks? I say NO!

    There was a time, in our lifetimes, when California was touted as one of the world's great economies - I remember reading things like, "... if California were it's own country, it would be the world's eighth largest economy...". It can be again, but we have to defeat/destroy the left first.

    Why on earth would any of our guys want to automatically give away such a large part of our America to people who are intrinsically against our Nation!??

    the JG

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  17. I lived in CT for a couple years. I left in 2003. They tax you for everything.

    There is an income tax, sales tax as well as property tax, even on automobiles. All of the cities down there are crime-ridden dumps.

    I wouldn't move back there for any amount of money.

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  18. Did Alvin write another verse to that song to explain how the poor get fed when we don't have rich people to tax anymore?

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