Wednesday, February 16, 2011

Taxes... They Are All Going Up... A Little

Milford's real estate taxes are going up a little only $106.00 for the average homeowner, state taxes well they are going up just a little when we include the increase in the sales tax, gas tax, and the  increased income tax. The average person in our state will have to pay an additional $750.00 a year. Federal taxes, well they are still working on that but we did see a glimpse of their plans, these include new health insurance taxes and carbon taxes.

To make matters more interesting there are thousands of homeowners who live in Milford that are part of Condo Associations, and yes those fees are also sadly going up with all else.

Thus far it would appear that the cost of food and clothing is going up along with the price of gas. Borders bookstore announced it is going into bankruptcy and will be closing its store at the Milford Mall. Connecticut's state unions are being forced into very large concessions and local governments like ours in Milford are still struggling to balance their budget.

The trend is very clear, the government wants more money from the taxpayers, employers cannot keep up and are laying people off or closing stores and more and more people are relying on help from the government.

Energy assistance, unemployment extensions, food stamps, housing assistance, health care for economically disadvantaged kids, and of course transportation assistance as we have seen in the past. These programs included "cash for clunkers," "Home buyers Credits," "cash infusions to big banks" and who can forget the millions of foreclosures and the latest government program "Keeping Americas Homes Affordable Act."

The disconnect between government, at all levels, and the reality that has become the Greatest Recession America has ever seen is crystal clear. The national debt is growing at a staggering pace and is expected to top 15 Trillion by years end, entire states are bankrupt, and municipalities are expected to go into default on government bonds issued under the "Renew America Act."

For the lucky few out there who have lots of savings, you may weather the storm and be able to see the light at the end of the tunnel. While no one knows where the "end of the tunnel" is, there are some out there who already see the the light.

Wall Street for some odd reason seems to defy Main Street, this is because as Main Street continues to struggle Wall Street continues to prosper. The index is up nearly 20% since last year but few on Main Street feel that recovery. Why you must be thinking? Over and over again the answer is clear and that is that Americas stock markets represent international companies with international business models. 

Many of the companies represented on Wall Street  are international companies. They do business in emerging and developed markets around the world and have unbridled access to liquid money and investment lending that ordinary Americans do not.

Most people who look at America for investing are immediately concerned with the extensive regulations on business that include employer mandates, environmental regulations, high energy costs, taxes, and according to our President our "D" rated infrastructure that must support their manufacturing operations. What governments fail to realize is that increases in taxes, along with the creation of new laws and regulations can dramatically alter the commercial and economic landscape of a community.

This problem is further exaggerated by treaties such as NAFTA, GATT, EPP, ETC.. these treaties make it possible for our nations corporations to shop every government in the world for economic opportunity and to gain an advantage over their competitors.

This is why so many former U.S. based companies have abandoned America. Our global manufacturing is more often than not conducted in nations that pay very low wages, have little to no regulation, low environmental standards and provide a welcome package for those who boost the quality of life of the once destitute people who lived in those host nations.

The issue of taxes, big government, and jobs will persist so long as we live in a bifurcated world where all levels of government tax without regard to the other. The notion of small tax increases is fine until those small increases, combined with others create an environment inhospitable to conduct business. The bankruptcy of Borders books this week is perhaps a reminder that things need to change if we are to stem the tide of economic decline in America and our state.

I hope those of you who read this today are able to make those decisions that ordinary job seekers cannot make for themselves, those decisions must be aimed at rebuilding the U.S. manufacturing base through tariffs and policies that help rather than hurt American wages and jobs. 


Anonymous said...

Heres the thing, I did nothing to create this problem of CT being neagtive in their bank account so WHY should I have to give more of my hard earned cash to bail this state out. Listen GOV. keep your filthy hands out of my pocket Im not enjoying it. You would think with the taxes we already pay and with two casinos in this state and all the lottery this state sells the governmaent could stop wasting time and money and stay out of debt. This is a prime example of why our residents are going to states with lower taxes and NO prperty tax, and why businesses are leaving. Just ask your physician, who just moved to Mass., WHY is that.

Rocco J. Frank Jr. C. E. & Michael Vecchiarelli M.A. said...

The only safe place to go is Arkensaw and North Dakota. I am not sure but I think those are the only states left in America that are economically sound.