[RunD1987]

Sooo probably dumb question why since the 90s has CT been I such debt? Was the Recession in the 80s really that bad for the State?

[East of the River]

Originally Posted by RunD1987

Sooo probably dumb question why since the 90s has CT been I such debt? Was the Recession in the 80s really that bad for the State?

It's longer then that there are several articles around about it. This is just one I found quickly.
https://ctmirror.org/2017/01/30/a-le...-fiscal-cliff/

Basically since 1939 we haven't set aside money to pay for future debts. we have essentially kicked the can down the road by borrowing and refinancing again and again and again. Even when we had budget surpluses (which has happened) we either spent it on new projects or gave it back to tax payers (Roland) instead of paying off the massive mountain of debt and obligations. Certain things like the recession in the 90's made it worse but really we have a bunch of leaders who decided to kick the can instead of dealing with the problem when it was still manageable. To use some one else's personal finance example here is what we did.

Went to college and got a good degree but saddled with huge amount of debt.
Start making money instead of paying for debt blew new money on a 200 person wedding
After the wedding we took the combined income and bought a new house in Greenwich.
We then refinanced the debt and kept spending every dime we made.
We then maxed out our credit cards.
Then look we got a inheritance (tax surplus) should we pay down debt? no lets take the kids to Disney world.
Now the CT budget is like a 60 year old looking towards retirement and realizing they have 75k in CC debt a house they have refinanced so many times to buy cars boats and new kitchens they stlll owe almost exactly what it's worth and no actual savings.

Which is why were stuck with no way to lower taxes in the immediate future. The only way would be to default on some of the obligations. States aren't technically allowed to do that. So we essentially are left with the Dave Ramsey option bring in as much income as possible with out hurting the economy while cutting as many programs as possible with out causing a revolt among fickle voters or causing people to leave the state if things like education get cut.

[RunD1987]

Ahhh got you. Well I am not in favor of taxes being raised.

So many services have been cut in the mental health, public safety, corrections, and disability services within the State. Furthermore, so much money has been taken and so much money has not been given back to area hospitals by the State. Public higher education cost have skyrocketed in the State.

There's a lot of areas in the State in need of infrastructure improvement but also State Parks as well in need of a revamp.

I don't see what else they could do. Only thing could see is make matijuanna legal. Privatization or partnership with businesses/non-profit agencies in regards to maintaining State services. Increase employee contribution to pensions and grandfather those with 5 year's a pension. Anyone knew a 403B and 401A. Tolls. Clean up any fraudulent spending practices. Possibly merge with another State as a last resort ha!

[beerbeer]

Stanley Black & Decker CEO Touts Innovation In Hartford, Raps Connecticut As Uncompetitive - Hartford Courant
Stanley Black & Decker CEO Touts Innovation In Hartford, Raps Connecticut As Uncompetitive

Great companies, smart people (except as voters), terrible competitive environment created by state government.

[MrGompers]

Originally Posted by beerbeer

Stanley Black & Decker CEO Touts Innovation In Hartford, Raps Connecticut As Uncompetitive - Hartford Courant
Stanley Black & Decker CEO Touts Innovation In Hartford, Raps Connecticut As Uncompetitive

Great companies, smart people (except as voters), terrible competitive environment created by state government.

They seem to be doing OK in CT's noncompetitive environment and I think they are going to pull thru. Also, remember that the new statutory corp tax rate is 21% so their net income will rise even more.

A friendly reminder to all the non accountants out here "net income" is after paying taxes.

SWK's net income has risen from 760 million to 1.226 billion in only four years. Sounds like they are about to declare bankruptcy. This is just a set up to request tax breaks from the state of CT. Pay no mind to the CEO.

[JayCT]

Originally Posted by East of the River

Talked about this in the other post just to meet our current budget it would have to be 13%. And that does not take into account all the vudu from the last budget that pushed off debt in the next few years. If I do the math correct we could assume to meet our debt in 2020 we would need a 15% or higher sales tax.

This is correct. Nashville, a city some here love to tout, has a 9.25% sales tax on items under $1,600 and a 12% sales tax on items over $1,600. They also have a 5.5% tax on groceries and a 2% income tax on interest and dividends. All these little taxes add up but are kind of hidden by the media who seem more interested in income taxes. Jay

[JayCT]

Originally Posted by MrGompers

They seem to be doing OK in CT's noncompetitive environment and I think they are going to pull thru. Also, remember that the new statutory corp tax rate is 21% so their net income will rise even more.

A friendly reminder to all the non accountants out here "net income" is after paying taxes.

SWK's net income has risen from 760 million to 1.226 billion in only four years. Sounds like they are about to declare bankruptcy. This is just a set up to request tax breaks from the state of CT. Pay no mind to the CEO.

Yes, he only made $12.38 million last year. Poor guy. We need to reduce their taxes so they can bring him up to the salary of his predecessor who made $54 million in 2016.

Just more corporate greed which very sadly has become the American way these days. Jay

[BobNJ1960]

Originally Posted by JayCT

This is correct. Nashville, a city some here love to tout, has a 9.25% sales tax on items under $1,600 and a 12% sales tax on items over $1,600. They also have a 5.5% tax on groceries and a 2% income tax on interest and dividends. All these little taxes add up but are kind of hidden by the media who seem more interested in income taxes. Jay

CNN/Money: Big city taxes

Nashville not listed, but Bridgeport burden per family 17.7%, Memphis, Tn 6.3%.

Bridgeport finally found a way to be #1!

[BobNJ1960]

Originally Posted by beerbeer

Stanley Black & Decker CEO Touts Innovation In Hartford, Raps Connecticut As Uncompetitive - Hartford Courant
Stanley Black & Decker CEO Touts Innovation In Hartford, Raps Connecticut As Uncompetitive

Great companies, smart people (except as voters), terrible competitive environment created by state government.

correct

[Robert137]

I see some recent posts on sales tax. The US Supreme Court today ruled that states can tax all(?) online purchases, not just those where the retailer has a physical presence.

https://www.fidelity.com/news/articl...1JH23B-OUSBS_1

I hope Connecticut uses the money wisely, like paying down debt, rather than creating new budget-busting programs.