CtTaxed.com

Tax Revolt Shell Game.

Be very very careful of Jim Amann House Speaker. Has the leopard changed his spots or is he carefully measuring his words to tell certain people what they want to hear? I have read of Speaker Amann’s relutance to increase education spending as much or as fast as Gov Rell has proposed and I have heard him on Connecticut talk radio and I believe people are reading into the Speaker’s words what they want to hear.

Speaker Amann is against the Rell budget because it does not spend enough on social services. Not because he believes in the spending cap or that we spend enough on education.

“She has decided to shortchange, even rob, every other state agency,” Amann said of the $35.8 billion plan Rell proposed last week for 2007-09, calling it “fiscally and socially irresponsible.”

Amann predicted that Democrats, who control 107 of 151 seats in the House and 24 of 36 in the Senate, would offer a plan to redefine the cap.

Amann, who has questioned the need to raise the income tax at all given the current budget surplus, said he would propose that any eventual increase be skewed toward the wealthy, progressively increasing the rate on those making more than $100,000 individually, or $200,000 for married couples, while preserving the existing 5 percent tax rate for those earning less.

“If we do get into a debate on raising taxes, it’s got to be on a progressive income tax, and we will win the day,” Amann said.

In the world according to Speaker Amann, tax increases are on the table, but for individuals making greater than $100,000 and couples making greater than $200,000. And these increased revenues should go for greater social program spending. How long before Gov Rev makes a “necessary deal, reluctantly” and agrees to a tax increase for the “wealthy” to get her program through? Coupled of course with additional social program spending to placate the Speaker? I think not long.

Additionally Speaker Amann would be quite content to call it a day and use the surplus for increased social spending and take the credit for no income tax increase. Either way we lose, that social spending will become permanent and when budget deficits arrive next year and the next, taxes will have to be increased anyways.

There will be considerable pressure to increase spending of social programs this year and next, because the deficits are projected to return in mass by 2008 and 2009 and beyond, with actual deficits in hand it will be very difficult to argue for massive new spending. Whereas now with fresh budget surpluses straining the coffers, money is quite frankly cheap.

Where did that surplus come from? Well it came from us, because we were overtaxed. I got an idea, why don’t you give it back?

All this tax talk in a state with the highest tax burden, it’s surreal.

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