Print

2011 The Year of Taxes

Mike McGarry

December 16, 2010

It's time for the grinch in your servant to come out. Enough of good cheer and ho...ho...ho. The truth must out, so... here goes.

Looking at the city and state, there is no question in this old bird's mind that we are facing large tax increases in the coming year(s). The city will see an increase, hopefully modest because it's an election year, 2012 is the killer, taxes on homes could double. But this year, the state will clobber us. Because ... it's not a state election cycle. They always do the tough stuff in the first year. We hear that the game plan is for three tough years. So the year – magically – right before the election will look bright and cheery, it might be a good year for Democrats because many Republicans will go to Florida to escape the tax tsunami.

After watching a very professional presentation by our Governor-elect, the probability of new taxes, increased taxes, fee increases, tolls etc... increased dramatically. He said “we can't cut 3.5 billion in services.. and we can't raise 3.5 billion in taxes.” Meaning, of course, that even at 50/50 we'll see a 1.75 billion dollar tax increase.

That's not the whole story either. Governor-elect Malloy claims that the first piece of business his administration will tackle will be setting the books right.

Well, we interviewed Lt. Gov. Fedele last summer and he told us the real deficit is 5 billion, that 1.5 billion was sloshed around to make things look better.

So, if that is the case, again let's go 50/50: 2.5 billion in cuts (hardly likely with a liberal legislature) and 2.5 billion in tax increases.

Hold it, it gets worse. Another priority of the new administration is transit – road, rail, buses etc. and the new Gov. wants a revenue stream solely devoted to such.

O.K., what is that? Tolls, of course. Hey, get your hot EZ Pass because nobody wants the cost or danger or pollution of old fashioned tollbooth. Now, everybody will have an official statelink (24 hours a day) to their car. Better behave.

The other option is a hefty increase in the gas tax. Lucky Longmeadow gas station owners. With electric cars coming, it will turn into a mileage charge in a few years with a state employee watching when you come and go.

So, unless the Supreme Court agrees with Virginia, the Feds will watch your health, the State will watch your car and when you can't pay your taxes, the city will have your house. Merry Christmas (it might be your last in Connecticut) and Happy New Year, as you pack the truck for the sunbelt.