Connecticut is losing better-paying jobs and replacing them with low-paying jobs, according to a study released by the Commission on Economic Competitiveness. The commission had previously attempted to keep the document secret by discussing it in a closed-door executive session, prompting a Yankee Institute complaint to the Freedom of Information Commission.
In the face of declining tax revenues and weak job reports, state lawmakers have to decide whether or not to continue to fund Governor Malloy's controversial First Five Plus program, which is scheduled to end this year. To fund the program, the state borrows money, which it then hands out to major corporations through grants, low interest loans and tax subsidies in order to create jobs. Commissioner Catherine Smith of the Department of Economic and Community Development testified before the Commerce Committee on March 15 that the program should continue for another three years.
General Electric’s decision to move its corporate head-quarters from Fairfield to Boston, sent shock waves through the Connecticut political class. But it isn’t just corporations and billionaires that are leaving to seek new lives and opportunities elsewhere. Connecticut ranks fourth in the nation for people leaving, trailing New York, Illinois and Alaska. For several years, Connecticut has experienced a net loss of population and that is affecting the tax base to the tune of $60 per second. The state’s income tax earnings, which comprise nearly half of the state's revenue, was much lower than expected for fiscal year 2016 and has legislators scrambling to make up the difference.
In 2014, Connecticut made national news coverage with some “interesting” bill proposals such as banning whole milk from daycares to fight childhood obesity and regulating the volume of movie theaters to protect people from hearing loss. Neither of these bills had any scientific backing and thankfully neither were passed. But that hasn’t stopped lawmakers from proposing a new batch of “interesting” legislation that may raise a few eyebrows. Here are some of this years’ strange offerings:
The Connecticut Commission on Economic Competitiveness held a closed-door meeting Tuesday to discuss a report on the state's economy based on work from the consulting firm McKinsey & Company. The commission met at 10 a.m. and immediately went into executive session, removing all observers from the meeting. Commission Co-Chairman Joseph McGee said the executive session would allow the committee to work out all the numbers. “There is a lot of information,” he said.
This week lawmakers on the Human Services Committee will vote on the Working Class Tax, a tax on jobs. This tax would be mean Connecticut employers would have to pay the state $1 per hour for every hour worked by an employee who earns less than $15 an hour. Every job matters in our state, and this tax means there will be fewer jobs, and things like your gas and groceries will be more expensive. We already tax too many things in Connecticut – we shouldn’t tax jobs too.