Dalio and Malloy are doing just fine. Thanks for asking. We just cannot bo anything but laugh at Malloy, Elitist Dem and his Hedge fund pals who are lining their pockets with tax dollars while the people suffer.
Mans CT will remain a wealthy state. That is because the ebbing tide of what is the American dream is sinking all boats, except the uber rich.
via AP
HARTFORD, Conn. — Connecticut’s coffers are feeling the pinch of the state’s super-rich no longer paying what they used to in personal income taxes.
This latest drop in tax revenues paid by the wealthy, a problem for the past several years, has exacerbated Connecticut’s current budget woes. The projected deficit for the new fiscal year beginning July 1 has now jumped from about $1.7 billion to $2.3 billion, while the deficit predicted for the second year of the state’s two-year budget is now about $2.7 billion. The state’s main spending account, the general fund, is roughly about $18 billion annually.
Some of the revenue hit is being blamed on changes affecting hedge funds, an important industry for Connecticut. Sullivan noted how several international hedge funds have recently failed, resulting in “significant retrenchment” from investors. That drop in tolerance for risk brings smaller margins and ultimately less personal income for the state to tax, he added.
In contrast with some of his fellow Democrats, Gov. Dannel P. Malloy has urged the General Assembly to steer clear of legislation that targets the state’s wealthiest taxpayers, including a proposed 19.5 percent tax on hedge funds. The “mere discussion of it in our state, year after year,” he said, is harmful to Connecticut’s commerce and reputation.
“This is an important industry. It produces a tremendous amount of revenue to our state,” he said. “If you blithely throw around the idea you’re going to propose a 19.5 percent tax on an industry that is responsible for a disproportionate share of our state personal income tax revenue, then don’t be surprised when people start to explore other opportunities.”
New Jersey experienced such a problem in 2016 when a hedge-fund billionaire declared himself a resident of Florida. David Tepper also moved the hedge fund’s official headquarters to Florida, resulting in a total estimated revenue loss of hundreds of millions of dollars to the state.
Malloy’s warnings follow a 2016 report to Connecticut’s Commission for Economic Competitiveness that determined the industries adding the most jobs in the state are paying an average wage of $54,018 a year. Meanwhile, industries with shrinking employment in Connecticut pay an average wage of $75,246. The same report also found Connecticut is losing young and educated people to other states.
But Malloy said he doesn’t foresee Connecticut losing its status as a wealthy state any time soon. Recent census data show Connecticut still has the highest per capita income in the nation.
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