By CHRIS POWELL
Connecticut is already nearly the highest-taxed state in the country, as well as nearly the most expensive (in part because its taxes are so high), but last Wednesday — the deadline for submission of state and federal tax returns — a hundred people from what calls itself the Connecticut for All coalition gathered at the state Capitol to urge state government to raise taxes on the rich.
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When it showed up at the Capitol in March, the Connecticut for All coalition was supporting legislation to increase state government’s obstruction of federal immigration law enforcement. That’s what Connecticut for All means by “all” — open borders admitting all illegal immigrants — as if the state doesn’t already have a desperate shortage of housing and expensive schools whose costs are rising in part because they must enroll so many illegal immigrant students who don’t speak English.
Connecticut for All’s arguments for higher taxes on the rich are as flawed as its arguments for open borders — especially its argument that taxes should be raised on the rich because some lower-income people pay a higher share of their income in state and local taxes than rich people do.
As is the case with federal taxes, the rich also already pay the overwhelming majority of state and local taxes in Connecticut.
Poor people pay no income taxes and often get various income supports from the government, like earned-income tax credits, medical insurance, and food and housing stipends, which help refund the taxes they pay indirectly — sales taxes, municipal property taxes (paid through their rents), and federal and state energy taxes.
Besides, the percentage-of-income argument doesn’t accurately indicate the practical burden of taxes.
Twenty percent of the annual income of someone earning minimum wage in Connecticut — $16.94 per hour or $35,000 per year — is $7,000.
But just 19% of the annual income of someone earning $350,000, who is subject not just to sales and property taxes, as the poor are, but also to state and federal income taxes, is $66,500, more than nine times as much.
Who really bears more of the burden of government?
Yes, inflation — currency devaluation — benefits the wealthy, since they own property and stocks, whose value rises even as inflation ravages the poor, who own little property. But then why do Democrats, supposedly the tribunes of the poor, like and perpetuate inflation even more than Republicans do?
Maybe what is most disgraceful about the clamor for raising taxes on the wealthy is its sense of entitlement, as was expressed by a college instructor at the Connecticut for All rally at the Capitol last week. “It’s time to tax the wealthy and the ultra-wealthy and redistribute those funds to the hard-working people of Connecticut,” she said.
Of course many wealthy people are not “hard-working” at all but mere beneficiaries of inherited wealth or government patronage. But many poor people aren’t so “hard-working” either but collectors of welfare benefits, people who are already beneficiaries of much income redistribution. Poverty is not virtue.
Yes, taxation is always a mechanism of income redistribution, but its original objective in this country was the maintenance of a decent government and a prosperous society. Contrary to the suggestion of that college instructor who spoke at the Capitol, the tax system was not originally meant for plunder, and it should not be regarded as a device for making one’s living from the sweat of others. That attitude has produced vast waste and corruption in government.
Raising taxes on the rich in Connecticut isn’t yet a matter of fairness; the people advocating it are not trying to calculate mathematically what tax rates are fair. They just want government to control and spend more money.
All able-bodied people, no matter how poor, should share and feel the burden of government, for as was said by a great liberal authority from a century ago, Theodore Roosevelt, the first duty of a citizen is not to vote himself more government subsidies but to pull his own weight.
Chris Powell has written about Connecticut government and politics for many years. (CPowell@cox.net)