CT-Update

In yet another triumph of the blue model for state governance, my native CT failed to reach an agreement on a state budget (this, BTW, is required by law). Like IL, a state that is careening toward something like bankruptcy, CT is in serious financial trouble. This has occurred after many decades of Democratic governance and is described by Brittany De Lea:

Despite having a per capita personal income that is more than 143% of the national average—according to Moody’s— the state’s economy continues to lag behind others. Revenue shortfalls in the state register around $450 million for the current fiscal year alone, while estimated deficit totals are projected to clock in near $5 billion for the 2018 and 2019 fiscal years combined, according to The Connecticut Business & Industry Association. Debt outstanding levels and unfunded pension liabilities relative to revenues are among the highest of any state in the country, Moody’s Investors Service said in May.

The three major rating firms have downgraded the state’s credit rating in response to the ongoing budget crisis. In its most recent downgrade, which landed Connecticut with the third-lowest rating out of every state behind only New Jersey and Illinois. Moody's said “the downgrades reflect continuing erosion of Connecticut's finances, evidenced by the pending elimination of its rainy day fund, growing budget gaps and rising debt levels.”

Connecticut's financial despair comes despite the state government’s approval of one of its largest tax rate increases ever in 2015, which has had a negative impact on some business investment.

But ... but .... but ... progressives keep telling us that tax increases have no economic impact and that "the rich" MUST pay their fair share." In other words, raising taxes and demonizing "the rich" are somehow the solution to profligate state spending, a state bureaucracy that has grown while the state population has declined, and crazy pension agreements that never had a hope of being properly funded.

Later this year, the federal budget and tax reform at a national level will become hot topics. I can guarantee that Bernie and Liz, Nancy and Al will become hysterical when tax cuts are discussed. They'll rant about the unfair benefits for "the rich" and whine about spending "cuts" that are actually nothing more than decreases in the increase in spending. They'll tell the 20 percent of taxpayers who pay 80+ percent of all income taxes collected that we just don't pay our fair share. They'll condemn any suggestion that programs can be cut or that entitlements are out of control. They'll adopt the same language and the same hysteria that got IL and CT into so much trouble—and their trained hamsters in the media will allow their ridiculous claims to go unexamined.

When all of this comes to pass, just remember that the blue model, coupled with the Democrats' tax and spend governance philosophy that has gotten IL and CT into so much fiscal trouble. If Bernie and Liz, Nancy and Al have their way, it will be the same party and the same governance philosophy that will lead the United States to fiscal ruin.