An Open Letter To Our State Legislators

Dear State Reps.,

The state as you know is in dire straits due to the economic downturn. Currently, and with the rise of ill constructed discord, I see you in a “No Win” situation. If you vote to raise taxes you are going to upset those who have to pay them, If you do not vote to raise taxes you will let down your political party, maybe even be labeled as an anti-union worker rights representative or a poor “team player.” In my conversations one person mentioned something that was “very honest” they said “the state budget deficit is so large that we could lay off all 48K state employees and still be in debt.” George Orwell once said “that in a time of universal deceit telling the truth is a revolutionary act” perhaps you should give this some thought.

There are many passionate and concerned people in our state and district who are really worried that higher taxes will cut into their already difficult lives. There is uncertainty over whether or not they will get pay raises or find the additional money to pay new taxes. This is at a time when health insurance costs among other things have increased dramatically. Milford , like our state, is also not exempt and is expected to have a colorful budget debate this evening over the same types of money problems.

The nature of recessionary politics does not demand a good or a bad vote (there is no such thing on this one vote,) what it does do is define leaders. It separates those who triumph as advocates who stand up to the wishes and consent of the governed while exposing those who usurp the process to cater to their personal careers and future ambitions. This is an issue that I personally believe you are all equipped to handle, because in the end I hope and pray that you will all be kind enough to tune in to the many concerns of your constituents who have also been praying for economic relief wherever they can find it.

Austerity measures are coming, this is inevitable and it’s not anyone in Hartford’s fault. This is a sad fact and consequence of the immutable nature of our nation and this states federally induced decline. This decline is a bipartisan result of costly wars, the Federal reserve and its Quantitative easing, the bailouts of the “too big to fails,” the loss of jobs to China and a stellar rise of gas prices accompanied by inflation.

Recognize and consider that your vote will be of little meaningful consequence either way the fate of our state has already been pre-determined for us by the Federal Government through its actions. The forces at work have clearly put Entropy in charge of Connecticut’s future. The process is known as the Hegelian Dialectic. We both know that the solutions proposed here in our state have already been tried in other states we need to look no further than California, Ohio or some other states who have tried the exact same approaches as our Governor is proposing. We both know that taxpayers are not governed by tables and laws but rather their own personal free will, willingness to comply and most importantly ability to comply. No one is going to go hungry or homeless because of taxes, people will survive and live in defiance.

While I cannot tell you for certain if more laws and higher levy’s on peoples income and property will work, I will tell you that you should listen to the polls and stand on the side of the people on this very delicate issue of higher taxes. Your integrity, your conscience, your heart, your understanding and your love of humanity is what is on the line. The people of our state and Milford need to see all of you as informed leaders who have identified and is courageously standing up to our oppressors.

This time around you all have a very important vote to make and I hope you stand with the people who love and count on you. I would encourage you to work harder than ever in standing up for the rights of this state and all who live here. Hopefully by now you have figured out who to hold accountable for our states financial problems. May God have mercy on us all!

Sincerely,


Rocco J. Frank Jr.
Chair MIP

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. 

Whopping New Obama Tax Increases Set For 2011

Unless the U.S. Congress acts, there is going to be a massive wave of tax increases in 2011. In fact, some are already calling 2011 the year of the tax increase. A whole host of tax cuts that Congress established between 2001 and 2003 are set to expire in January unless Congress chooses to renew them. But with Democrats firmly in control of both houses that appears to be extremely unlikely. These tax increases are going to affect every single American (at least those who actually pay taxes). But this will be just the first wave of tax increases. Another huge slate of tax increases passed in the health care reform law is scheduled to go into effect by 2019. So Americans that are already infuriated by our tax system are only going to become more frustrated in the years ahead. The reality is that the U.S. government will soon be digging much deeper into our wallets.

The following are some of the tax increases that are scheduled to go into effect in 2011….

1 – The lowest bracket for the personal income tax is going to increase from 10 percent to 15 percent.

2 – The next lowest bracket for the personal income tax is going to increase from 25 percent to 28 percent.

3 – The 28 percent tax bracket is going to increase to 31 percent.

4 – The 33 percent tax bracket is going to increase to 36 percent.

5 – The 35 percent tax bracket is going to increase to 39.6 percent.

6 – In 2011, the death tax is scheduled to return. So instead of paying zero percent, estates of $1 million or more are going to be taxed at a rate of 55 percent.

7 – The capital gains tax is going to increase from 15 percent to 20 percent.

8 – The tax on dividends is going to increase from 15 percent to 39.6 percent.

9 – The “marriage penalty” is also scheduled to be reinstated in 2011.

It is being estimated that the total cost of these tax increases to U.S. taxpayers will be $2.6 trillion through the year 2020.

Ouch!

But wait, there are even more tax increases coming.

The “health care reform law” contains over a dozen new taxes that will be implemented in stages over the next decade. When you add all of these taxes to the taxes that were mentioned earlier, the result is going to be absolutely devastating. According to an analysis by the Congressional Joint Committee on Taxation the health care reform law will generate $409.2 billion in additional taxes by the year 2019.

Double ouch!

So is it any wonder why the public has such a low opinion of the U.S. Congress?

Every single major poll done on the topic shows that approval ratings for Congress are at record lows.

For example, Gallup’s 2010 Confidence in Institutions poll found Congress ranking dead last out of the 16 institutions rated this year.

Of course there are a whole host of reasons why the American people are upset with Congress, but one of the big ones is the fact that we are literally being taxed to death.

However, it is not just federal income taxes that are killing us.

In a previous article entitled “Taxed Enough Already!”, we listed just a few of the taxes that Americans have to pay each year….

Accounts Receivable Tax. Building Permit Tax, Capital Gains Tax, CDL license Tax, Cigarette Tax, Corporate Income Tax, Court Fines (indirect taxes), Dog License Tax, Federal Income Tax, Federal Unemployment Tax (FUTA), Fishing License Tax, Food License Tax, Fuel permit tax, Gasoline Tax, Gift Tax, Hunting License Tax, Inheritance Tax, Inventory tax IRS Interest Charges (tax on top of tax), IRS Penalties (tax on top of tax), Liquor Tax, Local Income Tax, Luxury Taxes, Marriage License Tax, Medicare Tax, Payroll Taxes, Property Tax, Real Estate Tax, Recreational Vehicle Tax, Road Toll Booth Taxes, Road Usage Taxes (Truckers), Sales Taxes, School Tax, Septic Permit Tax, Service Charge Taxes, Social Security Tax, State Income Tax, State Unemployment Tax (SUTA), Telephone federal excise tax, Telephone federal universal service fee tax, Telephone federal, state and local surcharge taxes, Telephone minimum usage surcharge tax, Telephone recurring and non-recurring charges tax, Telephone state and local tax, Telephone usage charge tax, Toll Bridge Taxes, Toll Tunnel Taxes, Traffic Fines (indirect taxation), Trailer registration tax, Utility Taxes, Vehicle License Registration Tax, Vehicle Sales Tax, Watercraft registration Tax, Well Permit Tax, Workers Compensation Tax, and coming soon 16,500 new irs agents and the Obamacare tax.

Are you dizzy yet?

The reality is that the American people are being drained in dozens and dozens of different ways.

But what did you expect?

Did you think that our politicians would pile up the biggest debt in the history of the world and never ask you to pay for it?

Did you think that we could run deficits equivalent to about 10 percent of GDP without ever seeing tax increases?

The truth is that the U.S. government needs a whole lot more money than even these new tax increases will bring in.

After all, it is being projected that the U.S. government will be spending $2 trillion on the interest on the national debt alone by the year 2020.

To put that in perspective, the entire budget for the U.S. government is less than $4 trillion for 2010.

Are you starting to get the picture?

In the years ahead the IRS is going to be digging deeper and deeper into our pockets and a gigantic chunk of that money is going to go directly into the pockets of those who own our debt.

But very few Americans wanted to listen when this problem was actually somewhat fixable 20 or 30 years ago.

So now we are all going to pay the price – literally.

Picking Our Pockets One Business at a Time

Faux Pas Conservative Mayor Jim Richetelli announced with pride today that the city hired, private corporate tax collector strong armed Milford businesses out of triple the amount they hoped to collect a whopping $560 Grand.

While the Mayor called Milford business owners "scofflaws" and "tax cheats" he ignored the fact that Republicans are historically proponents of small business. The very engine that drives Milford's local economy. Today, despite the Richetelli propaganda Milford is indeed under severe duress, and the Tax attacks on small business are being exacerbated in aggregate. $560 Grand Collected, means the people of Milford have paid that money. This Money has been paid by the Milford Hospital Closing a unit and laying off people, money that our larger companies recoup by letting people go, cut their hours or just fire them.

In exchange the city raises our property taxes, cuts our services, grants themselves raises and closes our schools. How people are not outraged is beyond me, but as the dissatisfaction of our local Government continues and Milford's austerity goes by the wayside, the pandemonium of excessive spending at city hall continues.

The Milford leaders who bless this tax assault know nothing of the fact that Just under Obama tax levy's increased 10 Fold to 3.7 Million. To give the readers an inclination on how drastic of an increase this number is, the IRS statistics cited merely 200,000 levy's 10 years ago vs. 3.7M today confirming that there is no bailout for business owners. These levy's carry hefty penalties and interest that only go away after they are paid or the person who owes them dies trying to get out of debt.

We always hear about how Republicans are critical of Obama, the health care tax, the carbon tax the increase on capital gains tax etc. and yet we find that there are only differences in their logo's not their actions. Quite sadly and as a small business owner myself, I have seen and experienced first hand the tyranny of the IRS and the draconian measures of courts when times are tough. This year alone I had to say goodbye to many employees, and friends who lost their businesses and witnessed swarms of tax collectors shaking down businesses. If you want to see for yourself how bad things have gotten just ask you mail person how many IRS and Tax Collector letters they deliver daily and I promise you will be stunned.

But no matter how hard things get, I always find there is some clueless chap who is still willing to take a risk and rent a retail space in pursuit of the American dream. They do this with the same naivety and ignorance of their predecessors who, like them, were also unaware of how many tax predators will arrive at their doorstep demanding money.

Personally, I am a person that likes to rise to these kinds of challenges and find solutions. My friend Steve Pjuria who teaches a Milford Ed class on how to Start a Business brings his students to me for final training. I have been happy to give groups of aspiring business owners lessons in the pitfalls of opening a business. Sadly I must inform many of them that the city of Milford is hostile toward large businesses and today's headlines prove me right that government sanctioned corporations (on commission) will attack them and invade their books for a buck in this town.

This is not to say people should quit trying to make living, or pursue their dreams, but rather they need to consider a plan whereby success is profit based and often that includes taking your business mode to cyberspace, working out of your car or carving a space out in your home before becoming a Commercial tax target.

Westfield Mall Gets 11% Tax Decrease

The city and its largest taxpayer, Westfield Connecticut Post mall, have struck a deal on its taxes, which will result in the mall paying the city $1.2 million less over the next three years, said Mayor James L. Richetelli Jr.

Westfield appealed its 2007-08 tax assessment. The 1201 Boston Post Road mall was valued by the city to have a full market value of $251 million, but Westfield officials felt the true value was just $151 million.

Assessor Dan Thomas said the mall and the city reached an out-of-court settlement, which is essentially down the middle at $200 million. Sources said if the city had gone to court and lost, then it could have been forced to pay Westfield $2.4 million immediately.

That $2.4 million figure equaled the two years of taxes that they would have had to repay, if the $151 million valuation was upheld. By settling, the city will not have to write the mall a check.

Thomas said over the next three years, Westfield will have a tax credit of $400,000 per year for a total savings of $1.2 million. Westfield pays the city $3.8 million annually in taxes.

Thomas said it’s normal for tax appeals to result in a 10 percent adjustment, and Westfield’s reduction is 11 percent.

“I’m satisfied with the $200 million figure,” Thomas said.

Thomas said since the city has decided to freeze the phase-in of its revaluation over three years, the mall’s assessment is frozen at $125 million.

Richetelli said the tax agreement with Westfield was important to both the mall and the city’s long-term economic future.

“Westfield is our largest taxpayer. It’s vitally important to the community that the mall and retail remain viable,” Richetelli said. “The settlement is fair to both sides. It’s a good compromise.”

Richetelli stressed Westfield did not receive a special deal because it’s the city’s largest taxpayer.

“This avoids a very costly and drawn-out litigation,” Richetelli said. “This protects and enhances the viability of the mall to attract good tenants.”

Richetelli said Westfield’s tax credit will not hurt next year’s budget because the spending plan, which was approved in May, took into effect the $400,000 tax reduction.


By Brian McCready, Milford Bureau Chief

ORIGINAL ARTICLE CLICK HERE

Peter Spalthoff Advocates "Fiscal Responsibility"

While I am not in favor of many of the cuts that the Aldermen have made on the recently passed “election year budget”, I am very much in agreement with, and applaud, Chairman Blake for his position on reconsidering the use of our favorable bond rating for the work required to be done at Jonathan Law High School. It is public knowledge that the work has to be done, and for Mayor to say that “it is not the right time” I believe he is doing a disservice to Milford. This is the perfect time to take advantage of the positive lending environment that presently exists for Milford and the work should not be put off until after the election.

As Chairman Blake noted, the City has one of the most favorable bond ratings in the State. If that is true, then why not take advantage of it? Why wait until after the elections are over when the costs WILL be greater and the rates WILL undoubtedly be higher than they are today? Using our good bond rating, lower interest rates, and a lower project cost than previously proposed, is a sensible and responsible thing to be doing at this time. This would represent good planning for the future and good management of the City’s resources.

Many are aware that Milford retired some very high interest rate bonds this past year and to replace them with the lower rates that are available now makes good financial sense and epitomizes sound fiscal management. The Mayor’s insistence that bonding would send the “wrong message” could not be any further from the reality of what is needed for our community.

What has sent the wrong message was Mayor Richetelli’s request for a raise in the later part of 2008 knowing all the while he was going to be asking the unions to freeze their pay. Fortunately, the Aldermen rejected his pay raise request.
What has sent the wrong message was Mayor Richetelli’s spending $48,000.00 for a review of the Building Department procedures and practices.
What has sent the wrong message was Mayor Richetelli’s handling of the Cadley property sale.

And certainly, what has sent the wrong message, was Mayor Richetelli’s 3 step “election year budget” proposal that is comprised of: (1) transferring over 2 1/2 million from rainy day and other accounts. What happens next year if the economy is still sluggish and we need to move money again from accounts to balance the budget? (2) Having the unions freeze their pay this year saving the City $850,000.00. What happens next year when we have already guaranteed the unions an increase that will cost us that same $850,000.00, plus a “no lay off guarantee”? And finally, (3) he proposes selling a piece of City property for $225,000.00. Why not hold on to it until the market recovers and the value increases?

These three items will have to be factored back into the budget for next year and will inevitably create a tax increase for everyone.

Although all of our neighbors would appreciate and could use the proposed $150.00 savings in their taxes next year, I think they would appreciate hearing an assurance from the Mayor that next years budget will not swallow this tax saving and much, much more due to his reactionary fiscal policies.

Unfortunately, this situation is a result of poor fiscal management, which Milfordites are subject to every time an election year comes our way. The City’s budget should not be a “play thing” to be used for votes; it should be the backbone of the City and provide for all of us every year. It should not be a test of who can cut more from the budget, the Democrats or the Republicans. We deserve better and should demand more from our elected officials.

Peter L. Spalthoff Independent Party candidate for Mayor

Current Snapshot of Milford's Real Estate Market

View More Data updates and Source Files by Clicking HERE

Milfords New Mill Rate Decreased To 28.23

Milford's Mil Rate was once 34.36 according to a 2005 George J. Smith assessment today that number has decreased to the above mentioned 28.23 Mill Rate. This figure is listed at the town website tax assessors link proving that conditions now exist that are pressuring the number downward.

Some have clamored that this is merely an election year ploy to make the incumbent leadership look good, while others believe that the 2005 assessments are not indicative of the true value of properties today. But to set the speculation and conjecture aside what is really going on is the Mill Rate is merely leveling out. While most experts could debate the actual growth of the grand list, one thing we all agree on is that mill rates decrease with increases in property values. This is why Connecticut's wealthiest towns like Greenwich, Darien, and Westport have recognizably low Mil Rates. (In most cases these are in the single digits.)

Milford's affluence appears to have grown, but not happily because with that image or "illusion" comes the unwelcome decrease in state funding to our schools creating the sore topic of an unfair cost sharing formula, but the good news is that average homeowners will be paying a little less taxes this coming year an average of 2.5% less.

Put down the champagne, because this is a Pyrrhic victory. The 2005 re-evaluation was done at the peak of the market only to be followed by a three year bust in real-estate that caused prices to stagnate and in some cases decline. Most residents on or near the water saw staggering 50%-100% property tax increases virtually overnight at the higher mil-rate, now perhaps the give back will render some desperately needed relief.

This decrease is very welcome but only because we have been taxed so excessively hard in the last couple of years due to the false reality of an inflated "bubble" real estate market. In my opinion this decrease falls short and is still slightly out of balance with true and accurate home values. By my personal calculations the mill rate should have been at 26.5. and not 28.23. (Estimate derived from chart above.)

A Novel Solution To The State Deficit

Some time ago about a year ago today to be precise I said that the economy and local businesses would falter. As our clueless leaders balk at the balanced budged amendment to the state constitution, they shutter at the thought of eliminating yet another 3 billion dollars from our state economy.

The impossible mission is to balance the budget and still have friends show up to your party at the local club. With the new legislature expected to arrive into session in the coming weeks, baptism by fire is apropos in lieu of the burgeoning budget catastrophe. But perhaps there is hope, and in times of turmoil it is always good to think "outside the box" something I think I may be good at.

But here is the big idea, and this idea is based on all the technology that I find so annoying. These include texting on your cell phone, X-Box, and like gaming consoles, dollar menu garbage food, game shows, Facebook, Myspace and of course the I-Pod and all those annoying musical devices that cloak people into the matrix of technology.

Safe to say that these technologies have become, in my opinion, as irritating as people who smoke near others, and drink until they have no friends and a reputation for drunkenness. This brings me to the point, how many people would object to being ejected or "taxed out" of the technology matrix.

The countless hours people and kids spend disconnecting from reality is really a disgrace, and on occasion I could personally say that I have witnessed the "looneyness" of texting friends and relatives in the same house. The cellular companies are getting wealthy with this trend alone, and the music industry is cashing in a good sum by selling 99 cent songs, the video game industry is already in "hot water" and is being forced to label their games, and even have recalled some like "San Andreas" a version of a killer road rage game called "Grand Theft Auto."

With our state leaders calling for a "balanced budged" i.e. Gov. Rell and Cafero, who wish to achieve this without raising taxes, should at least consider implementing a win/win tax approach to the financial malaise now at hand.

Nothing would give me more pleasure than to see a new tax implemented against the digital matrix of society. This in my opinion would be a blessing, a tax that makes gizmo's more of a luxury than a commodity. This of course could be thinly disguised as the lifeline our state so desperately needs. Why not tax it into the abyss? And as a last note stop sending "weed" smokers to prison for years and years shorten their sentence these people are "stoned" and the punishment does not fit the crime 3-6 months is plenty. Lots of savings there at $55,000.00 P/Y per prisoner.

Rocco Frank