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    Op-Ed
    Wednesday, April 24, 2024

    Democrat's budget takes wrecking ball to Conn. economy

    The Democratic Party in Hartford has failed to protect the interests of the residents of the entire state of Connecticut. It failed to protect residents who are fed up with repeated tax increases, who want to stay in Connecticut for the long term, who want good paying jobs and who demand lower taxes and fees. Instead, the Democratic Party supported the second largest tax increase in the state’s history; an increase that is already driving out our largest employers and our most sought-after residents in droves.

    I read with interest state Sen. Catherine Osten’s July 26th guest commentary as she tried to distract readers from the awful truths of the Democrats' budget decision by accusing Republican Sen. Paul Formica of making false claims in his July 5th commentary. Formica stated truthfully, and I would agree with him, that 40 percent of the legislature was left out of the budget discussion. It doesn’t matter that the Republican budget proposal had its warts, just like the Democratic budget proposal; the fact of the matter is we weren’t even invited to the negotiating table. The result is that the Democrats own a tremendously bad deal for the state.

    The Democrats voted to increase taxes on our highest earners. Arguably these are the decision makers at companies like GE and other employers both large and small, who are factoring this increase into the laundry list of other factors − increased taxes, regulations, and fees − that could impact their exit plan decision-making process.

    The Democrats have badly impacted medical care in the state and have officially made Connecticut the worst place in the nation to practice medicine. A 6 percent gross receipts tax on hospitals and surgical centers has a chilling effect, but probably most detrimental is that good doctors graduating at the top of the best medical schools in the nation are not coming to Connecticut, swept up by states where the cost of practicing is lower. Who do you want dealing with your medical care; the doctor who graduated at the top of the class or the doctor who graduated at the bottom?

    The Democrats implemented a unitary tax on Connecticut businesses that have locations in other states. It requires employers to pay a tax on monies earned somewhere else. This is what made GE and other large employers so upset that they started making plans to leave the state. Ultimately this tax was delayed for one year, which gives GE and others time to thoughtfully plan their exit strategy.

    So let’s think for a moment about GE and the impact their departure might have on Connecticut. We certainly can look in our own backyard to see what happens when a large employer leaves, by just remembering the impact of Pfizer removing 4,000 jobs locally. GE has 5,500 employees, which means approximately 20,000 people will be affected when you factor in family relationships. Then think for a moment about all of the small, locally owned businesses you patronize over the course of a month. Would it be a hair salon, contractor, pizza place, coffee shop or even a local doctor? If GE leaves, there will be 20,000 less customers for all those small businesses. This would be a devastating subtraction from the economy that would put a significant number of small businesses out of business and reduce tax receipts for the state. The loss of 20,000 people from the state’s economy is a key concern.

    If you want to collect less income tax revenues, then increase taxes. If you want less business tax receipts, increase taxes. And if you want less sales tax receipts, then add more items that can be taxed. It is simple economics.

    But one thing is sure, you can’t tax away a bad economy.

    The Democrats are doing the opposite of what should be done and the voters of Connecticut are angry that the Democrats keep trying.

    We need change in Hartford that releases the strangle hold the Democrats have on the state. We need change that makes us more attractive for businesses. We need change that keeps our youngest and our oldest in the state. And we need to implement protections that ensure our medical care is the best in the nation.

    None of that will happen as long as the Democrats are in charge.

    John F. Scott is the state representative for the 40th District of Groton and Ledyard.

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