Unfortunately, the legislative Democrats
seem to lack a stomach for governing in tough times, so
they cling to the “tax the rich and we won’t
have to make any real decisions” fantasy that makes
them feel better and keeps their rank-and-file members from
complaining too loudly. After all, the Democrats learned
long ago that this kind of class warfare is an easy way
for them look like Santa Claus and us like “greedy
Republicans” as we try to explain the intricacies
of binding arbitration reform or unchecked government growth
amidst the roar of “rich vs. poor” rhetoric.
This rhetoric, however, doesn’t roar
by itself, so the Democrats routinely treat us to self-congratulatory
press conferences where solemn “policy-makers”
pat themselves on the back for their commitment to soaking
the successful (who already foot 80% of state government’s
tab) in order to keep from having to make tough decisions
about what to spend your money on. It’s funny, kind
of, but mostly just frustrating, watching them roll out
this tired dog-and-pony show every year to the delight of
the same special interest groups who are already delighted
with them anyway.
The newest example of this tax-and-spend
initiative is perhaps the most ill conceived yet. Rolled
out just before Thanksgiving in what one can only hope was
a sly acknowledgement of the fact that we were all about
to be served a bunch of leftovers, the brand-new-super-innovative
“this-will-fix-everything” Democrat plan enacts
a 20% rate increase on income tax for “millionaires”
(single people making $531,500 a year) to increase “education
aid to towns” (aka – teacher salaries) through
the notoriously distorted Education Cost Sharing (ECS) formula.
In other words, the Democrats plan to raise
taxes and increase government spending. Fine, this is what
Democrats do. But when our economy is still reeling from
the post-9-11 recession and we already lag behind the rest
of the region in economic recovery, this whimsical talk
about taxing and spending should strike a chord of terror
in heart of anyone who cares about the long-term economic
health of the state.
You see, rather than assuming the mantle
of leadership and acknowledging the reality of the hobbled
economy, these Democrats turn to press-conference-ing over
governing. With straight faces they claim that the state
millionaires “know a good investment when they see
one,” and for this reason, it is implied, will now
happily fork over 20% more in state taxes every year to
fund the Democrat’s vision of the highest paid teachers
in the universe cashing checks with “love, Connecticut’s
millionaires” written in the memo line. That’s
a swell idea, but my guess is these millionaires will recognize
that, for them, an even better investment would be to purchase
a home in Florida, pay NO income tax, and let the Connecticut
Democrats figure out who’s going to pay for other
people’s children to go to school.
It won’t be cheap. Outside of the
initial $170 million tax increase, their plan increases
spending at unsustainable levels, balances on paper for
but a single year, and creates a massive hole in the out
years that will require further, uglier tax increases to
fund. Go and ask the Democrats who’s going to foot
the tab beyond 2005. They won’t tell you, but my guess
is that the definition of “millionaire” will
become much more, shall we say, “flexible,”
and eventually include the middle class.
But what’s truly disappointing, sad
and frustrating is the fact that if we simply worked together
to reform the state’s binding arbitration laws, which
effectively mandate outsized increases to municipal employee
salaries every year, we could do more for education funding
and property tax reform than even the most lopsided millionaire’s
tax fantasy could ever accomplish. Nearly every municipality
in the state has begged for the loosening of the chokehold
that binding arbitration puts on their budgets, and it has
been endorsed by all of the usual suspects in the world
of municipal government advocacy, including CCM, COST and
several state newspapers.
The Democrats, however, stand opposed to
this effort because they recoil at the suggestion that somehow
a problem can be solved without flinging gobs of your tax
money at it, and they certainly don’t want to upset
their favorite public employee union leaders who want nothing
more than to siphon your tax dollars, on both property and
income, into bloated contracts and gargantuan salary increases.
Thus, these Democrats who can’t govern
are left to preach class warfare with their union leader
friends who can’t stop demanding more, while the rest
of us try to act responsibly and keep Connecticut’s
spending at levels the taxpayers can afford. For the sake
of all of Connecticut, let’s hope those happy little
Democrat elves leave their tax-and-spending plans in Santa’s
workshop before the Connecticut economy turns into an unforgiving
Grinch.