It?s no secret that our nation?s tax code is designed to get more from the rich than from the other working classes. Federal tax rates are higher for the wealthy, as are many states? income tax laws. In fact, many states take direct aim at the wealthy to pay for the many fees and services in their government budget. However, that plan might not be working so well.
At least one state is taking note that gouging the rich is no longer a viable option to make up for its budget shortfall. Even though Connecticut has one of the highest per-capita incomes in the country, the state?s budget is still experiencing a nearly $400 million shortage.
The state?s governor, who already raised taxes on the rich in 2011 and 2015 to ease similar problems, admits that he can?t go back to that well again this time around. But some still think that the state should go after the wealthy a third time.
The commissioner of the Department of Revenue Services says that the idea that they can get another significant amount of money from that part of the population to help the state?s long-term stability is simply not correct.
As for the governor, he is asking for more concessions from public sector unions and is looking to cut even more state funding from towns and cities across the state.
The post Gouging the Rich With Higher Taxes is Not Working in Connecticut first appeared on Advisors to the Ultra-Affluent – Groco.