In Illinois the newspaper is learning even though the politicos are a lagging indicator. In Connecticut the politicos are being taught a lesson. We shall see what learning takes place. WTNH, News8 says:
Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years.
It means the current budget year, which ends in just two months, is now seriously in the red and next year’s deficit has ballooned to $2.2 billion.
It’s happening because the state of Connecticut depends too much on its wealthy residents, and wealthy residents are leaving, and the ones that are staying are making less, or are not taking their profits from the stock market until they see what happens in Washington.
The total budget is $41 billion so a $2.2 billion deficit (other reports have it a little lower) is a big deal. Who would have thought that individuals react to tax policies? Our only quibble with the report is that we would have changed despite in bold to because of.
Now the question is what will the political leaders and people of the Nutmeg state learn from all this? Will they try to prevent wealthy residents from leaving like the US tries to prevent corporations from leaving? Or will they just ride the swings described by the governor:
Governor Malloy added, “The reality is that in Connecticut we get most of our money from very few people and that can produce some very wild swings.”
It is unclear if the Governor is getting wisdom or just trying to make a politically viable excuse. It is up to you Connecticut.