Horrible. CT Public Act 11-1, or “An Act Promoting Economic Growth and Job Creation in the State,” can be described as nothing less than horrible. It's typical government mumbo-jumbo. The state increases taxes across the board as well as special taxes on certain groups, then turns around and gives special tax breaks. But who gets the breaks, and how are they chosen? These tax breaks are admissions that taxes impact behavior, and lower taxes can increase incentives to save and invest. Since that is the case, why did we just raise taxes?
John Ryan, in a recent Darien Times op-ed asks, "Are we seeing a more ‘business friendly’ Connecticut?"
Ryan cites some of these lucky tax dodgers, like those who "want to sponsor a Connecticut wine festival," or those, "interested in remediating brownfields (Section 24-27) or want to set up an “airport development zone” (Section 39-45)." The language, even the limited language Ryan quotes suggests the tax breaks are written for very specific constituents. Sponsors of Connecticut wine festivals, we imagine, are not very numerous.
Ryan doesn't think much of these proposals. But the reason he doesn't think much of them is because they won't benefit Fairfield County. He almost admits they are a waste, but implies the waste would be OK if Fairfield County benefitted.
Let's put it in context. All of us just had our taxes raised, but we've now realized that high taxes can have a negative impact on job creation and job growth. So we're going to lower taxes, but only to an ambiguously defined group, like sponsors of wine festivals. And in Ryan's eyes, thats acceptable, as long as the sponsor lives in Fairfield County.
Ryan applauds a variety of other tax breaks, mostly to special interests without ever asking why these groups deserve such special treatment nor ever asking if taxes are too high, why did we just raise taxes?
Ryan saves the worst for last: funding of a state-sponsored venture capital arm and tax breaks for movie production. We can think of only one idea worse than these two, and we're pretty confident alternative energy received special tax breaks as well. But venture capital and Hollywood.
Again, why? Why these two? Why is it reasonable to raise taxes on everyone in the state to benefit these two groups? Does it make sense that taking our money and giving it to a venture capitalist will create more jobs, or be more efficient than not taxing us to begin with?
What is even more inexplicable about Ryan's support of the venture capital arm is the recent well-publicized experience of the Department of Energy and Solyndra. Solyndra is in a long line of politicized investment decisions that turn out poorly for the taxpayer. Somehow, Ryan believes the state is immune to the issues that have led to billions of dollars of losses over 200 years with the Federal Government's interference in the capital markets.
Finally, tax breaks for Hollywood. This one is so absurd on its face we are surprised it has such popularity with politicians. Our taxes have been raised so Steven Speilberg can make more money. That is our job creation plan?
We've unfairly singled out Ryan for our criticism. And we think he deserves every bit of it. But we level the same criticism of every senator and representative that voted for this horrible slop of pork. By the way, that's almost all of them. In the House this atrocity passed 147-1, and 34-1 in the Senate. The vote reminds us of the aphorism, "There are no atheists in foxholes, and no Republicans when they are handing out the subsidies." Partisan politics gets a bad reputation because it's unseemly and difficult to watch. But we much prefer partisan sniping to bipartisan assaults on logic, economics and our wallets.
