The Courant reports that one of Governor Rell’s state-of-the-state speech
proposals goes to a public hearing today:
Polls show public support for the idea, which includes using
money from the state’s two casinos to reimburse municipalities for the
amount they would otherwise collect from the car taxes.[...]Several Democratic leaders, including House Speaker James A. Amann,
D-Milford, have come out against the proposal as being unfair to certain
taxpayers. At the same time, however, they have backed away from outright
pledges to block the plan.
This idea, I think, has a pretty good chance of happening. And while I’m a
fan of lower taxes, I’m not entirely sure that this is the best idea in the
world. Here’s why:
- There’s something intellectually appealing to the idea of residents
having a little “skin in the game” when it comes to participating in the
town’s budget process. At this point in time, the only “skin” renters put
into the game is the property tax on their car. Without that, part of the
pressure to think responsibly when being asked to approve a town budget is
eased. After all, it’s not their money that’s being spent.
- The car tax funds will be replaced with, essentially, larger block
grants from the state. However, as recent years have shown, what the state
giveth, the state can taketh away, depending on what tax receipt projections
are, and depending on the pressures of other projects. Eventually, this will
translate into higher taxes on homeowners. And frankly, property taxes in
Connecticut are obscene enough.
I wouldn’t mind this plan so much if it were part of a larger dose of sanity
being imposed on municipal funding in the state. I’ve written previously about a reform idea I’ve had — to
allow towns to draw income from piggyback sales and income taxes, rather
than solely relying on property taxes and state block grants.
However, that’s a very touchy subject in the state this year…especially
since it’s an election year.
