Tax increase

[navyvet]

I think it is terrible that Governor Rell is raising personal income taxes by 10%. I also find it incredible that there seems to be no outcry against this.

[gunderstone]

I believe that is partly due to the fact that everyone thinks it’s great that she's proposing to do away with the personal taxes on vehicles

I don't think folks have stopped to realize that in most cases this is going to mean that their total taxes are going up.

Perhaps then more folks will speak up

Of course, it'll be too late

[catnap]

Firstly - what does that exactly mean.."raising the income tax by ten percent" - and how much in dollars and cents would that be for a person?

Second, the issue with the car tax...If I drive a Saab in Meriden it costs me 700-1300 bucks a years in car taxes...if I drive the same car in Wallingford, or Hamden or..cheshire - Why should it cost me less or more to drive it someplace else? its the same car..the car tax is ridculous. If it costs the same in all towns to drive the same car, then maybe taxing would make, at least..tax-collecting sense.

I like the idea of the cap on Property taxes...and If I can get a better understanding of what exactly they mean "10% percent raise in income taxes" - I could be all for Governor Rells proposal.

We're loosing CT students and students from other states are not comming here for college due to the high cost of tuition, and that means those students will not live here either. Sadly in CT the high cost of living is choking everyone out - can't even get into healthcare.

So whats the best way to fix it? - 10% sounds like alot - but maybe not - and if the car tax can be eliminated and the property tax increases capped at3% a year - AND must be approved by the public...:) - might not be a bad plan.

[gunderstone]

This is intended as a polite response – I am impassioned so please do not take it wrong

"Firstly - what does that exactly mean.."raising the income tax by ten percent" - and how much in dollars and cents would that be for a person?"

All depends on the person - I paid $6,031.00 in State income tax this past year - if it goes up for me by 10% next year I'll be paying an additional $603.00 dollars

In contrast for my 1995 Chevy Van, my 2000 Blazer and my wife's 2004 Jetta I paid a total of $445.00 in property taxes so for me, my taxes are going to increase - no more $445.00 in property taxes but instead $603.00 additional dollars via the state income tax.

The other issue is a state income tax is forced off my check and I cannot control it where I have control of a property tax - I can choose to live in a town with a lower property tax. I can choose to drive older cars whose real value depreciates and therefore my tax goes down year over year.

For example, I like a sales tax over an income tax as I control it – if I choose to stay home this week and buy NOTHING the local government, state or federal government get nothing from me that week. With an income tax they take it away before I get the chance to decide what to or if to spend on anything

“Why should it cost me less or more to drive it someplace else? its the same car” Because in some towns they have services that other towns do not have and thus tax rates are different. I would expect to see higher taxes in towns that have trash pick up than in towns that do not as they are providing a built in service that another town does not have. Also, some towns have much more commercial and industrial buildings which change the mil rate up or down on which property taxes are based. Any home or car owner in a family of four than thinks they are paying their fair share of taxes needs to review what I wrote at http://forums.ctrecord.com/showthread.php?t=274 (catnap I believe you did – you posted there)

You wrote that “We're loosing CT students and students from other states are not coming here for college due to the high cost of tuition, and that means those students will not live here either. Sadly in CT the high cost of living is choking everyone out - can't even get into healthcare” and you’re right but the problem with eliminating one tax for the sake of the other is that it’s not going to benefit everyone and often those who might need it most – think about it, the average person that is having a harder time of it is going to use public transportation or an older car and that is taxed very low (the taxes on my Van were about $65.00 last year). That person that is harder on getting by is going to get whacked on their income tax now and that is not going to help them its going to make their situation worse.

I am all for hearing more thoughts on this – these are just my feelings and yours may differ

[catnap]

So they're talking about 10 % on what you PAY....not on what you earn..that's different.

and I think I would rather pay another 600 a year and save 2000 on car taxes. (we have four cars - everyone works or goes to school)

I disagree on principle with two points...first why should taxes become such a burden for some people in some towns that they have to settle for less? The issue of our personal purchases being controlled by taxes aside, doesn't that hurt business too?? - If people cannot purchase a better car or new car because the car taxes are so high? And the high rate of property taxes in Meriden help to keep housing prices down in this city, along with other things.

and I live in Meriden..I assume you do too - anywhere I want to go is gonna cost me more to move too, my neighborhood is declining in value - I can't afford to move - so I don't have a choice there...until my mortgage is paid down much more significantly - (like 5 more years), I can't afford to leave Meriden. I do not have a big fancy house - in an expensive neighborhood. I'm innercircle - southwest side.

And I'm not that all impassioned for the 10 increase in income tax...we are already the highest taxed people in the country....but I'm open to suggestions as long other taxes can be controlled. 600 (useing your number) divided by 52 weeks = 11.54 a week is digestable.

The tax bill I absolutely HATE is the Water Bill! - of course they say its not a tax..bah.......I tell people from other towns what I pay for water and sewer and they can't believe it.

But, I think we both agree somehow someway we need a friggin break.

[gunderstone]

Actually the increase is against what you earn - I believe the most recent example I saw was that the max tax of 5% was going up to 5.5% - so that is a 10% gain overall but to be clear - it is being taxed against my pay.

I live in Wallingford and not Meriden but the purpose for local property taxes is clear - the municipality is taxing the local property, your home and autos to fund the local budget for which it is responsible for.

Putting the some of this tax at the state level and then having the towns ask for it back is unfair in a couple of ways (the way I see it and I don't know ALL the details so some of my facts may be in question):

1) A town will indicate how much it needs "replaced" from the removal of the property tax on cars from the state - if the state refuses or has some built in limit for some reason and will only give the town X then the town STILL has to figure out where to get the money or which service to cut. If it cannot cut the service(s) then it will need to raise revenues and it can only do that by charging local fess and / or raising the remaining property tax that falls on your home

2) The tax burden is partially shifted from the towns to the state if the property tax on autos is removed - if any town asks for more than they would have otherwise gotten from taxing vehicles and somehow gets it that means some other town technically subsidized the asking town. What I mean by that is, if TOWN were to normally collect 1M in auto taxes otherwise but has to ask the state for 1.1M after the change and gets it then that means the money came from somewhere else off the backs of other citizens from other towns by way of the state income tax increase and to me that is not the right thing to do.


So in some ways we agree and in others we don't but that's what make opinions great

:D

[eds]

I would rather have the increase in income taxes. I can do more to reduce AGI, like putting more into the 401K or Roth IRA. I'll just throw more into the 401K, pay less income tax, and put the money I'd have paid on car taxes also into my IRA. That money will grow and earn more for me in the end.