With the April 15 tax filings in, the Office of Policy and Management revised last month’s surplus estimate downward 90% to just $15.7 million for FY08.
These revenue estimates underscore the need to act with the utmost caution and fiscal discipline as we meet over the next two weeks to negotiate the mid-term budget. In just one quarter, January to April, we have watched our surplus shrink by more than $240 million. If this trend continues, Connecticut will face a budget deficit in FY10 that could reach into the hundreds-of-millions of dollars. We need to look for efficiencies in spending and make smart decisions now to avoid that outcome.
It is imperative that the Democratic majority forgo its ambitious new spending proposals and all of its proposed tax increases, including the ill-conceived Delivery Services Tax. Connecticut residents are struggling with the rising costs of food, fuel, medicine and other necessities. A tax increase now would only further strain their lives and our economy.
Wednesday, April 23, 2008
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1 comment:
I agree.
As a Wall Street Economist and Money manager I see how businesses are fighting to keep their heads above water. Last May my models told me that we were heading into a recession and that because of the Credit market situation and the Mortgage issue, I knew that we were heading into a long and arduous economic slow down.
I believe this it the time to give businesses the opportunity to defend themselves because they are the ones providing jobs. They are the ones who increase the velocity of money by giving people incentive to buy and invest.
Taxing does just the opposite. It inhibits those who want to invest and keeps money out of consumers hands. Now is the time for the State to cut back on spending, keep our taxes down and let people keep more money in their businesses and in their pockets.
To my Republican Friends, I wish you well and good luck. You have my support.
Kind Regards,
Mark E Smith
Trumbull Board of Finance
mark@markesmith.org
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