But isn’t this the goal of our Democrat state legislature?

 

Movin’ on out

Democrats weep bitter tears over loss of 75 high-paid jobs, paying $299,000 on average, to North Carolina. “We raised the income tax just for them”, Governor Malloy wailed, “brought back the death tax and jacked up the conveyance tax on their homes … we took their money and are they grateful? No they’re spiteful and they’re hateful – thank God we still have Greenwich to kick around!”

Reached for comment, Franklin Fudrucker, chairwoman of the Greenwich Demmerkratik Party, chose to look on the bright side. “These 1%er’s salaries took up the same space as 400 real-people’s jobs,” he said, “so we’re actually netting an additional 325 jobs, once the Governor creates them. We’re on a roll!”

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30 responses to “But isn’t this the goal of our Democrat state legislature?

  1. Balzac

    We are so lucky to live in a state with a Democratic governor, Attorney General, Assembly, State Senate, Congressmen, and Senators. No Republicans among them. How’s the hopey-changey thing working out?

    NOT!

  2. Dollar Bill

    Why don’t you move to Alabama then, Balzac, where the GOP controls all levers of government? I hear its a land of milk and honey!

  3. Anonymous

    Balzac and Chris: Do you think people who are about to move, let’s say out of the city for their first suburban home, stop and contemplate the politics of a state before becoming a resident? I hope so, as I agree with Balzac’s comments, but I fear the state of a state is not remotely on a buyers radar. Schools, commute, yes, but politics, no. Hence, Connecticut can have all the Democrats it wants, get away with murder, and IMHO, the state will still attract young couples and power peeps.

  4. Anonymous

    Uconn’s Fred Carstensen quoted in the article has always recomnended more Staate Govt. spending and higher taxes for the upper income earners to help the State grow. He still doesn’t get it. He wants to spend more State tax $ to “create” jobs. Oh yes he’s on the State payroll at Uconn.

  5. hmmm

    anon at 525,

    i think the state benefited from the financials services boom…i think those days are over. i imagine the financial service business will shrink a lot and ct will suffer…at this point it’s a game of musical chairs…voting with your feet is the only way as this state is doomed

  6. NRA

    “so we’re actually netting an additional 325 jobs, once the Governor creates them. We’re on a roll!” Ouch. The thing is, Chris, it’s painfully too close to how our lib-left friends do economic math.

  7. Reader

    Ct is now 44 in the 2012 rankings. http://www.cnbc.com/id/46413845

  8. CatoRenasci

    Voting with their feet….
    However, one has to acknowledge that the growth of trendy lefty voting in lower Fairfieldy Count is very much the result of all those wonderful liberals (products of the increasingly lefty ivy- and ivy-wannabe schools, who have made money in the financial services industry) moving here to Greenwich.
    There is no real excuse for the rest of the state other than they believe in free lunch, the tooth fairy, and fleecing Fairfield County.

  9. JRH

    Quite the ironic brouhaha here. Let’s first grasp that we’re talking about a firm, UTC, whose profits are directly linked to federal largesse — except it’s the kind of largesse that appeals to Republicans, i.e., funneling tax dollars to defense contractors. (Yes, the HS unit here also deals in commercial aircraft, but you can hardly find an industry that is propped up by more public money than commercial aviation.) They are leaving Connecticut for North Carolina why, exactly? Because that state’s government offered them the richest bribe, as some here might call it. (I know this would require the commenters here to read the article before bloviating about it, but…) HS/UTC is making this move in exchange for $21.6 million in government money. Why did conservative North Carolina decide to spend public money this way?

    “Jobs like these create other jobs,” said John Allen, economic development director for Mecklenburg County. He said that transferred employees will buy houses, buy jewelry and dine out in Charlotte restaurants. Those kinds of ripples are called the multiplier effect in economists’ lingo.

    So let’s review: State governments offered competing packages of public money to a private firm. The private firm chose the state that was willing to give away more money. The states were willing to do this because public expenditures like this have a stimulative effect. And this is getting cheered on a blog that thinks Keynesian economics is Commie claptrap. Great stuff.

  10. FF

    Would you have agreed with Dan Malloy if he matched the $22 million pile of free money that North Carolina gave to this company? Of would it have been another example of Liberal sloth? Of course, North Carolina has a Democratic governor, but they are smart because you thought it was a conservative state. On this stuff, a little intellectual consistency might be in order

    • I have posted on this before – every study I’ve seen shows these state grants to be totally ineffective – seems to be a political thing (practiced by both parties) to give voters the impression that their ruling class is doing something. Standing up to unions, cutting taxes, spending money on maintaining existing infrastructure (instead of, for instance, building $600 millin busways from New Britain to Hartford or $1 billion new trains from New Have to Springfield) would actually accomplish something useful but will never happen – no one ever took a photograph of a governor standing beside a road repaver.

  11. JRH

    FF, can’t tell if your comment was directed at me, but assuming it was (“they are smart because you thought it was a conservative state”):

    My point was not that North Carolina was smart or stupid. I was pointing out that while CF and others here are pointing to the UTC move as an example of businesses fleeing taxes and regulations in Connecticut, that’s not what the story is about. Rather, it’s about a company chasing public money. And while I’m a believer in strong public investments in public goods, and fiscal stimulus in protracted recessions, these kinds of piecemeal giveaways to profitable firms are not what Keynes had in mind.

    As CF points out above, this is practiced by states governed by both parties. No less a conservative rock star than Chris Christie has tossed out tons of tax favors and public dollars to keep firms from leaving NJ, or to entice them to jump the border from a neighboring state. Governor Malloy, for whom I voted and generally support, has made the same practice a centerpiece of his agenda. I agree with CF (gulp) that it’s generally bad public policy. States — whether Connecticut, New Jersey or North Carolina — cannot build a sustainable, vital economy through beggar-thy-neighbor policies like these. Shoveling millions of taxpayer dollars to cash-rich firms (Comcast, GE, Disney, etc.) isn’t sensible jobs policy. Companies soon figure out that frequent threats to move from one state to another — or even move within the same state, or same city (see, e.g., FreshDirect in NYC) — are all that is needed to open the spigot of state money. CF is right that a more comprehensive solution is needed, I just happen to think he’s wrong about what that ought to be (with the exception of maintaining existing infrastructure). Companies with highly paid workforces want to be in states with top-flight schools, widely-available public transit, affordable housing and proximity to other commercial and cultural hubs. If we continue cutting funding for community colleges, the CSU system and UConn, we’ll find it hard to lure companies here. If we continue to make it insanely difficult for someone to get from Stamford to Bridgeport to New Haven to Hartford to Springfield, without spending hundreds on gas and hours on the road, we’ll find it hard to lure companies here. And if we don’t do anything about restrictive zoning regulations across the state that make it prohibitively burdensome to construct multifamily housing in desirable locations, we’ll certainly find it hard to lure workers here who are interested in living here but not handing over their entire salary for the privilege.

  12. Balzac

    FF: you ask if we would have supported hypothetical Democrat Malloy state spending to retain the jobs? By this question, you betray your prejudice that all problems have one solution: govenment spending. How’s that working out?

    The right question, is do we support lower taxes and less regulation to encourage hiring?

    And $ Bill: Please note that NC is a right-to-work state. Are you surprised that right to work states have the most income and job growth? Do you desire income and job growth? I don’t want to move out of state. In fact, I moved out of France to come to economic freedom and prosperity. Unlike you, i have lived under quasi-socialism, and know its effects.

    CT, with its Democrat policies, is at war with its prosperous citizens. Do you realize that at present CT is the ONLY state with a state estate tax? And since essentially all this CT estate tax is paid in Fairfield County, we can say, Fairfield County is the only state in the US with an estate tax, FORCING all prosperous residents to move to FL to die.

  13. JRH

    Balzac, as you can see here, not all liberals think that these tax-incentive/bribery packages make for good public policy, and as you can also see, this is something that governors and legislatures like regardless of party — Christie is a conservative rock star, and he’s doing it in NJ on a scale larger than Malloy is doing in CT. And, no, of course Connecticut is not the only state with a state estate tax — either you’re just mistaken, or some right-wing site has led you astray. And if you think the estate tax has anything to do with job creation, you are, plainly speaking, nuts.

  14. Balzac

    JRH: the personal insult indicates your argument is… air.
    Confirmation that CT is the last state with a gift tax, which is the inheritance/death tax about which I wrote: http://wills.about.com/b/2012/06/25/state-estate-tax-update-tennessee-repeals-gift-tax-and-phases-out-inheritance-tax.htm
    I said nowhere that estate tax is related to jobs, but since you brought it up, perhaps you can explain just how driving our prosperous seniors out of state helps employment in home construction, food service, automobile sales, retailing, or any other productive activity serving CT residents.

  15. pulled up in OG

    Here is the list of jurisdictions that collect a state estate tax as of January 1, 2012:

    Connecticut
    Delaware
    District of Columbia
    Hawaii
    Illinois
    Maine
    Maryland
    Massachusetts
    Minnesota
    New Jersey
    New York
    North Carolina
    Ohio
    Oregon
    Rhode Island
    Tennessee
    Vermont
    Washington

    http://wills.about.com/od/stateestatetaxes/qt/stateestatetaxlist.htm

    • Pulled Up, you might want to check those out – unless the law has changed (and it could have, I haven’t studied tax since law school), there’s a credit in the federal estate tax for taxes paid to the deceased’s state but it’s limited to a certain percentage. Many states tax estates up to that limit, figuring, correctly, that the money would otherwise just go to the feds. What set Connecticut and a few other states apart back then is that they imposed a tax far higher than the federal limit, with the result that estates paid the federal tax and then paid still more to the state with after-tax dollars.
      Again – I don’t know whether this is still the case but if it is, many of the states on your list aren’t punishing estates the way Connecticut does.

  16. pulled up in OG

    about.com seems to float Balzac’s boat so let him figure it out. : )

    “Do you realize that at present CT is the ONLY state with a state estate tax?”

  17. hmmm

    jrh,

    i don’t know if nj is doing it on a larger scale than ct…170 million to cigna(if they meet a few guidines), ubs recevied 20 million, tronox just received a sweetheart deal… i don’t think so….but please verify

    pulled up,

    regardless of the point ct has decoupled from the fed when it comes to estate taxes not only that ct’s threshold for collecting estate taxes is lower than the feds…why i ask???? I think we understand the point balzac was making or maybe we don’t

  18. JRH

    CT has a $3.5 million exemption, and the estate tax is, after a recent reform, a marginal tax. Leave your children $3,650,000 and they’re paying tax on only 4.1% of their inheritance. And on that 4.1%, they’re paying a 7.2% rate. Total hit: less than 0.3%. The height of unfairness!

    • Well it does emphasize that it’s a Greenwich tax and, I suppose, a West Hartford one too, aimed exclusively at successful people and high level corporate officers. We certainly don’t want that sort of person in the Nutmeg state!

  19. hmmm

    jrh,

    i believe for this year or next it is lowered to 2 million much much lower and both 3.5 and 2 million are much much lower than the federal exemption…again why?

    also please find proof that ct hasn’t given away more money than nj…i think i posted a few examples…

  20. hmmm

    isn’t there also a 220 million dollar biotech center being built in hopes that it attracts biotech companies??? i think i am up to almost 500 million right????

    certainly verify all of my numbers it’s more than likely i am wrong..again a state of 3.5 million residents collects roughly 13 billion dollars and we are out of money….so i probably am wrong…

    what do you say ff????? actually i think i know what you think …we probably have a lot more to collect….right?

  21. JRH

    Hey hmmm, here’s a story about Christie’s largesse. (Oops.)

    http://www.nytimes.com/2012/04/05/nyregion/christie-gives-new-jersey-firms-tax-breaks-for-short-moves.html?pagewanted=all

    $102.4 million to Panasonic to move nine miles within the state. $82 million to Goya Foods to move two miles down the road, and $251 million to Prudential Insurance to move a few blocks within Newark. That’s just the beginning.

    Maybe CF will post this up toward the top today, but I have a feeling he only likes to show you stories about Dumberkrats.

  22. pulled up in OG

    North Carolina:

    State income tax 7.75%
    State and local sales tax 6.75% – 7.25%
    Groceries sales tax 2%