Connecticutt Governor Dannel Malloy is learning you can’t always count on the rich.
The Democrat last month deferred debt payments, trimmed programs and diverted funds as tax revenue came up short and opened a $200 million budget hole. The gap emerged about a year after Malloy, 56, who was elected in 2010, signed a $2.6 billion tax increase, the biggest in state history.
Connecticut, the wealthiest U.S. state, joins California and New Jersey in facing a deficit as income-tax revenue is the most volatile in at least 30 years, according to the Federal Reserve Bank of Chicago. Connecticut counts on the levy for almost half its revenue, with the biggest chunk coming from the hedge fund capital of Greenwich. Connecticut debt has posted the weakest returns this year among U.S. states, Barclays data show.
The shortfall “is just the consequence of loading up on high-income individuals,” said Philip Fischer, who runs eBooleant Consulting LLC in New York and formerly headed municipal-bond research at Bank of America Merrill Lynch. “It is destabilizing. They have very volatile incomes. The states have that reflected in their budgets.”
Increasing volatility in tax collections is complicating local governments’ emergence from the worst fiscal crisis since the Great Depression. States projected or dealt with a combined $54 billion of deficits in the fiscal year starting July 1, according to a report from the Center on Budget and Policy Priorities, a nonprofit group in Washington focusing on issues affecting lower-income Americans.
cj — Liberals are incapable of learning. They hate anyone who is not either liberal or dumb ass dirt poor — or a union member. So, they go about chanting “fuck the rich.” Ok dumb brains, you “fuck the rich” and they sure as hell are going to fuck you.