Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years. It means the current budget year, which ends in just two months, is now seriously in the red and next year’s deficit has ballooned to $2.2 billion.
It’s happening because the state of Connecticut depends too much on its wealthy residents, and wealthy residents are leaving, and the ones that are staying are making less, or are not taking their profits from the stock market until they see what happens in Washington.
It’s been ten full days since the April 18th tax filing deadline, and workers at the state tax department are still processing returns coming in the mail.
Even though about 90 percent of all Connecticut residents file electronically, many still send their checks for taxes due in the regular mail. It now looks like expected revenue from the final Income filing will be a whopping $450 million less than had been expected.
“Next year it looks like our first year budget, fiscal ’18, now instead of having a $1.7 billion deficit to address, it’s now about $2.2 billion,” said Senate President Pro tem Martin Looney (D-New Haven).
They learn the hard way or they learn the easy way, but they always learn in the end. Eventually.