HARTFORD, CT (CBSNewYork) – Despite a record increase in state taxes, Connecticut will come up short nearly $1 billion dollars by year’s end.

WCBS 880 Connecticut Bureau Chief Fran Schneidau On The Story

Gov. Dan Malloy blames the shortfall on reduced income tax revenue among higher income taxpayers shifting their investments.

Republican State Senator Scott Frantz, a member of the legislative finance committee, says the governor may have a point there, but “the other thing is that when you raise taxes, it’s like raising prices. People tend to not buy as much, and when you raise taxes, people tend to get much more intelligent about how they’re managing their income.”

Frantz says unknown is how many residents moved out of Connecticut because of the huge tax increases that kicked in on July 1.

Spending cuts are being ordered as result of this expected shortfall.

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Comments (2)
  1. Dan Berry says:

    The most obvious solution is to simply bill the entire budget shortfall to New York City. As suburbanites, we’re the REAL Americans, so the City owes us big.

  2. None Of Your Business says:

    If you lower taxes and lower prices, people have more money and will spend a bit more of that more money. How many functioning brain cells does it take to understand that taxing people until they’re squeezed dry and screaming does not raise revenue.
    Also, why don’t state governments get rid of their bloated bureaucracies and when it comes contract negotiation time, tell the unions what they’re going to get — lower salaries, lesser pensions and will have to contribute to their health insurance — and if the unions don’t like it, let the unions go out on strike and stay out forever. Every one else is sacrificing and doing with less — much less — but the unions are determined not to give one inch/penny, etc.

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