Every governor should be forced to actually take economic classes before taking or even running for office, especially Democrats.
One Democrat governor is finding out the hard way what it means when you tax the rich and don’t cut spending.
Tax the rich. Connecticut, another left-wing bastion in New England, has raised taxes on the wealthy twice over the past six years. Cutting spending would never be a thought in a Democrat’s head, so they figure they’ll just tax the wealthy even more to pay for all of their ridiculous spending.
Wealthy aren’t playing. Apparently many who are wealthy have either left Connecticut or are holding off on taking profits because they aren’t sure what will happen with the market. Either way, the wealthy aren’t playing, and that is hurting Connecticut’s over-spending. Even Governor Malloy admits that taxing a few to feed the government beast isn’t a smart idea. From News 8:
Some of it is because some wealthy people have moved out and others are sitting on their stock market gains waiting to see what President Trump does.
State Revenue Services Commissioner Kevin Sullivan said, “The hedge funds industry, upon which we rely very heavily, is much more conservative in the last year in terms of the incomes that people are realizing (and) no bonuses again on Wall Street.”
Governor Malloy added, “The reality is that in Connecticut we get most of our money from very few people and that can produce some very wild swings.”
What this means? It means that conservatives are once again right. You cannot tax the wealthy into oblivion and expect great returns. They will either figure out a way not to pay taxes or they will take their money elsewhere.
Most people don’t mind paying a reasonable amount of taxes to keep roads going, government running, schools educating, fire and police services going, etc. But there comes a point when you demand too much of the money people earn, and they simply get tired of being the whipping boy.
Connecticut is learning that the hard way…though had they asked a real economist (not a left-wing one), they would have already known this is what would happen.