The Transportation and Climate Initiative is pushing for a regional cap and trade system on gasoline distributors to fight climate change, invest in mass transit and fight for climate justice, but scientific modeling suggests the program would have no impact on global temperatures. Up to thirteen states on the eastern ...
Taking a Bite Out of Jobs: The Economic Effects of a Sales Tax Increase on Restaurant Meals
**Please download the PDF to read the full study**
Predictably, Connecticut’s budget languishes in perpetual deficit. This is because fixed costs like pension pay- ments and healthcare have risen faster than tax revenue can keep up with them.
As a result, lawmakers confront two unpalatable choices – they can either cut costs or raise taxes. Unfortunately, too often over the past decade, lawmakers have chosen to raise taxes, stifling the state’s economic growth and making Connecticut uncompetitive in attracting people and jobs.
One tax (among many others) that lawmakers have recently considered increasing is the restaurant tax. In this paper, a researcher from The Beacon Hill Institute shows that even a one percent increase on prepared meals would cost the state over a thousand jobs; a two percent increase would result in almost 2,000 jobs lost.
As the history of the last seven years demonstrates all too well, there is a cost associated with every tax increase. More tax hikes will only continue to limit Connecticut’s economic growth. The only long-term solution to our state’s fiscal crisis is economic growth — so tax hikes should definitely be off the table.
**Please download the PDF to read the study**
Connecticut saw a net loss of 9,869 income tax filers between 2017 and 2018, constituting a loss of adjusted gross income totaling $1.1 billion, according to the Internal Revenue Service. The breakdown of earnings relative to population loss show that although Connecticut’s highest earners were not the largest group of ...