A common-sense approach to the state’s challenges is one that includes new revenue in addition to strategic spending cuts that does not ask low- to moderate-income residents to disproportionately shoulder the responsibility of our collective challenges and that supports the state’s long-term economic health.
Connecticut residents and lawmakers grappling with the state’s fiscal challenges should start the New Year with one goal in mind: to build thriving communities across our state. Economic development policy should focus on investing in our people and our workforce by protecting the public systems such as education and health care that undergird a strong economy . Despite the headline-grabbing “business climate” rankings that bear little relationship to economic growth or actual tax climates, there’s more to economic development and tax policy than rates alone —businesses seek educated and productive workforces because it pays off.
In the economic expansion following the great recession, the top 1 percent in Connecticut enjoyed exclusive benefit from all income growth, compared with 85.1 percent of income growth enjoyed by the top 1 percent in the United States as a whole. …By adding fairness to the state tax system, lawmakers could begin reinvesting in education, infrastructure and other smart investments to grow the state’s economy. Strategic investments would in turn increase opportunity across the state, enabling a return to a more democratic economy with a growing middle class and shared prosperity.
General Electric’s corporate-headquarters move from Connecticut to Boston has been inaccurately described as a decision based solely on taxes. This characterization might be understandable, given GE’s public outcry over the legislature’s adoption of a common-sense policy known as mandatory combined reporting, which requires profitable corporations to pay their fair share. On the other hand, Massachusetts has long had such a policy on the books and is also seriously considering a millionaires tax.
After a decade of serious discussion, the Connecticut General Assembly wisely conformed our state’s corporate income tax policy to that of 24 other states by adopting a common sense policy known as mandatory combined reporting. But some corporations that exploit its absence to avoid paying their fair share are making a last-ditch effort to persuade policymakers to reverse the decision. That would be a mistake.