CCM Says Malloy\’s Car Tax Is \”Dead On Arrival\’\’ – Little Support To Eliminate Tax

by Categorized: 2014 Election, Gov. Dannel Malloy Date:

Big-city mayors blasted Gov. Dannel P. Malloy\’s budget Wednesday as municipal leaders said that Malloy\’s car tax elimination plan is driving nowhere fast.

\”I think the governor\’s proposal is dead on arrival,\’\’ said Jim Finley, the longtime chief Capitol lobbyist for the Connecticut Conference of Municipalities. \”There are no votes for it.\’\’

Regarding a possible phase-in of changes in the car tax, Finley said, \”Everything\’s on the table right now. … As the Speaker told CCM, whatever happens with the car tax will not happen in this biennium. There will be an ability for cities and towns to prepare for it, and cities and towns will have a seat at the table in the formulation of the change to the car tax.\’\’

Concerning the reasons for the plan, Finley said, \”I don\’t know what the governor\’s motivation was. I\’ll take him at his word that he wanted to provide direct property tax relief to car owners. But it comes at a terrible cost to municipalities.\’\’

Stamford, Malloy\’s hometown that is now operated by Republican mayor Michael Pavia, would lose more than $20 million if the car taxes were eliminated.

New Haven Mayor John DeStefano said that Malloy\’s budget assumes belt-tightening at the municipal level, but he has already cut the parks department down to 56 employees, from a high of 106, 10 years ago.

Those workers oversee 2,275 acres of parkland, 53 sports fields, 25 tennis courts, and 415,000 program participants in camps and neighborhood activities in New Haven.

\”In trying to fix this tough state budget, some have said that municipalities need to learn to do more with less,\’\’ DeStefano said. \”The message is: we have been doing more with less in solving tough budgets over the last several years.\’\’

Following rounds of layoffs, 335 filled positions have been eliminated – meaning 18 percent of the non-school workforce in the last decade, DeStefano said.

\”We have laid off police officers in New Haven,\’\’ he said.

Malloy\’s proposed budget would cut $15 million on the municipal side in New Haven, DeStefano said.

Malloy\’s chief of staff, Mark Ojakian, responded, \”As town leaders know, every budget is about setting priorities.  The governor’s priority is to continue the effort to improve public schools and create jobs, and to do it without raising taxes.  In fact, he is trying to ease the burden on middle class families by providing some much-needed tax relief. \’\’

Ojakian added, “We understand that change is hard, but change is also necessary.  Local leaders know that.”

Standing on the fourth floor of the state Capitol during a press conference, Bridgeport Mayor Bill Finch said, \”I think you see all the mayors here, united.\’\’

He added, \”The car tax is a lousy tax. Nobody here likes the car tax, but you can\’t just take $17 million or $18 million out of our budget without a plan to replace that. … We have people living on the edge because of this mortgage crisis. … In my neck of the woods, and in Mike\’s neck of the woods [in Stamford], we have people register them in New York because there is no car tax there. We create a moral hazard for the people of Connecticut and we say, \’if you go outside the city, you\’ll cut your car tax. And if you go outside the state, there will be no car tax.\’ We\’re collecting 75 percent of the car tax. I\’d much rather collect the 98 percent, like I do on the house tax.\’\’

Finch continued, \”If we had one rate across the state like Governor Rell proposed, I\’d be in favor of that.\’\’

Waterbury Mayor Neil O\’Leary said the state is proposing to send $10 million in additional funds to the Waterbury public schools.

\”The truth is our board of education only asked for half of it,\’\’ O\’Leary said. \”So we\’re getting 5 million extra dollars.\’\’

Since he became mayor, O\’Leary said, he has not filled more than 100 and then cut 12 to 15 \”meaningful jobs.\’\’

Finley said, \”To pick one item out of the state-local tax system and ask for such a drastic change doesn\’t make sense. … Let\’s work together and make comprehensive change to make our tax system, at the state level and the local level, fairer and more equitable for all taxpayers.\’\’

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17 thoughts on “CCM Says Malloy\’s Car Tax Is \”Dead On Arrival\’\’ – Little Support To Eliminate Tax

  1. BW

    I think everybody knows that tax burden would be shifted to real estate if it ever went through. No town is just going to absorb a loss like that.

    1. Some Dude

      Definitely- the big problem is that in rural/small towns, they have very high populations of senior citizens (who turn out to vote in very high proportion). They typically don’t have fancy or newer cars, but they do own homes. Ditch the auto property tax and the tax burden shifts more evenly onto them and off of the younger middle-age class that does own the newer and higher-value cars.

      Malloy’s initiatives are having a tendency to be pushed through regardless of protest- so if this does happen, it’ll feel good for a year until your local town votes to up the mill rate to cover the lost tax revenue stream.

      Every town just did that after they went through a property revaluation after the 2008 housing bust- property values tanked, so they uped the mill rate to extract the tax dollars.

  2. Progressivism is a Mental Disorder

    Let me get this straight: the state is $1B/year in the hole and the Governor proposes to get rid of an existing tax which causes cities and towns to raise property tax?

    This guy isn’t too bright.

    1. The Conn-servative

      Yup and he wants to raise the new budget 10% with 4.5 % of that going to state employee raises. That would be the same state employees who are still in a 6 year, guaranteed no layoffs agreement. Just remember that generally speaking,the only sectors seeing job growth is healthcare and government. Pretty sad.

  3. Billabong

    Let me get this straight: Malloy proposes a tax break for citizens and the towns oppose it so it doesn’t seem like the mill rate is going up, even though most people would pay less in taxes.

    Yes, the “tax burden would be shifted to real estate”, which means richer people and businesses would pay more. Middle class people will pay less. That’s the way it works.

    1. Nick099

      No Bill, that is not the way it works. If you own a home…and that includes “working poor” and “middles class” folks under your Marxist standards, taxes will go up, up, up. Here in Hamden we have a wonderful Democrat Mayor…Scott Jackson who for 4 years has raised my taxes a wonderful $1,200 while real estate values have fallen. Now the same man is talking about pension issues and proposes yet another 4 mill increase….all the while making draconian proposals to destroy the 2nd Amendment. Talented fellow eh?? Ever wonder WHY Bill, CT lags behind other Northeast states in recovery and jobs??? Put the bong down Bill and pay attention. CT’s economic policies are idiotic….the fantasy of delusional big-government creeps.

      1. Billabong

        Yes, that is the way it works. The town needs to raise a certain amount of money. What is not on cars will be placed on other things — business property and, yes, houses. Unless you have a high-value house you will almost certainly pay less.

        I know you guys hate Democrats, but this one is trying to cut taxes for middle-to-lower class people with this move.

        Also, the number of private sector jobs in CT is up. Read the papers, read your town charter and maybe you won’t be so consistently wrong.

        As for your guns – it’s troubling for the rest of us when people with fantasies about non-existent “Marxism” want weapons.

        1. Kim

          who is the ‘rest of us’ you are referring to, billyboy? And your fantasy about the fantasies of others holds no weight amongst rational people.

          It would be simple to list at least 20 areas where our liberties are being eroded or have been eroded over the last couple of decades. Ignoring these facts will destroy this country – apparently the goal of liberals.

          Ask Susan Kelo if government overreach is a fantasy.

          Ask the creator of the video blamed for Benghazi if government overreach is a fantasy. He’s STILL in jail, and for what? What happened to free speech?

          Ask Bob Woodward if government overreach is a fantasy. The White House is bearing down on him for telling the truth about Obamanation statements and policies.

          Ask responsible gun owners if government overreach is a fantasy. It’s happening right now.

          Ask the dead – including one of our own border agents – from the Fast & Furious scandal if government overreach is a fantasy.

          Ask any citizen who is paying attention, if the administrations’ wish for permission to use drones on American citizens if government overreach is a fantasy.

          Allow me to use your own words: “You can’t just make up stuff and claim it’s real.”

          A well-known and tired liberal trick is to accuse the opposition of acting in ways that the liberals themselves are acting, while pretending they are not guilty of the very things they are accusing their ‘opponents’ of. This practice reflects either complete ignorance; willful deception; or outright lies and misdirection by liberals. Which do your lies fall under – take your pick or all of the above.

    2. Kim

      first time I’ve ever been accused of being ‘rich’, billyboy. lower middle class, yes. Rich, not hardly.

      Not only that but I actually had to pay taxes to CT this year instead of getting the usual refund. Somehow, through no changes to my income bracket, earnings, or anthing, suddenly I am out an extra $1,000.00 or more.

      Now Malloderous is going to raise fuel taxes so I can lose even more of my income to his distributionist policies (distributing taxpayer money to cronies and government workers, etc.)

      That’s the way it works? And that’s ok with you?

      I guess I’m glad I’m not ‘rich’ or I’d be completely broke – which I suppose is the ultimate goal of government policy – everyone is broke except them and the non-productive

      1. Billabong

        So silly, Kim, really. It says “richer” people will pay more. In grammar and logic that is known as a “comparison”.

        Malloy has not proposed a tax increase on fuel. You can’t just make up stuff and claim it’s real.

        1. Kim

          billyboy: your saying it doesn’t make it true. If ‘richer’ is a comparison, what are you comparing it to? Or isn’t that necessary in your world? You’re playing semantics on this point and you would do well to admit it.

          As far as the fuel tax goes, blanket denials by liberals should not be construed as real. It is you who is making stuff up and claiming it as real.

          Here’s your proof and the link:
          “If the governor’s budget passes, gasoline, oil, and diesel products will be subject to higher taxes, raising $52 million. Connecticut has the fourth-highest gasoline tax at 45.2 cents per gallon, and the budget proposal would increase the gas tax by three cents. Higher fees for motor vehicle licensing, registration and inspection are also suggested in the budget, and are projected to raise over $20 million.

          Such tax and fee increases make sense if the revenue is necessary for transportation projects and is used for that purpose, but the reality is that these special funds are often raided to finance general government services. If the tax increases discussed above are just roundabout ways of increasing general fund revenue, then labeling them as taxes or fees for transportation is disingenuous.”

          http://taxfoundation.org/article/connecticut-governor-malloy-proposes-multifaceted-tax-plan

          1. Billabong

            It’s simply not true. Read Malloy’s budget plan, it’s right on the state website. You can find a link to his bills. There is no such proposal.

            “Richer” means “richer than others”. Like, people with $50K cars and houses more expensive than the median. Duh.

            Yeah, and let me know when the black helicopters are coming. Your ilk has been waiting for that for over 50 years, since claims that fluoridation of water was a commie plot.

            We have elections. The Republicans gerrymander districts so they still control the House. Republicans control the majority of governorships. Where is the fascist (or is it communist?) takeover being engineered by liberals?

            Civil liberties are stronger now than ever: Jim Crow laws? Gone. Gay people can marry in many more states. There is no draft. Abortion is legal. Medical marijuana is more available. The march is towards freedom and liberty, except in paranoid-conservative fantasyland.

            Not to mention that conservatives opposed every one of those expansions of personal liberty.

          2. Kim

            billybong (aka billyboy/wildbilly):
            You state: “Richer” means “richer than others”. Like, people with $50K cars and houses more expensive than the median. Duh.

            Under your ‘rules’, we are all considered rich except for those at the very bottom of the economic scale. Like I said, I’ve never been accused of being rich before.

            The rest of your post? Sheer nonsense and totally devoid of reality. You attack the so-called theories of my ‘ilk’ (whatever that means) as paranoid in spite of history and the facts that I pointed out. In the same breath you speak of Republican gerrymandering as fact.

            We have elections, you state: Yes we do. And those who run for office are rarely chosen by the people, but by the party. It’s not a stretch to say that by the time someone reaches the office of mayor they are already bought and paid for. Are you now going to pretend that elections are NOT driven and governed by wealth and a complicit media?

            Your pretense that Malloy doesn’t plan to increase fuel taxes is a perfect example of your doing what you accused others of doing: stating something that is not true, knowing it’s not true, but hoping to be believed. Malloy can call his increase anything he wants, but it is still a tax.

            Say what you will – the truth is the truth and is easily proven. Follow your own rules and don’t expect anyone to believe you just because you say so. Read your heroes’ autobiography with an open mind if you want to find the truth about the plans to destroy this country. Perhaps if you were as objective as ‘my ilk’ you would have a better grasp of reality

            http://cttalking.com/government/connecticut/connecticut-mulls-controversial-oil-tax-to-promote-energy-efficency/

          3. Kim

            billyboy: your blatant untruth about the fuel tax increase is once again front and center in the Courant – perhaps you deny it’s existence?

            This from one of the letters in the Courant – care to admit you are mistaken?

            “House Bill 6650 proposes a 3.5 cent tax on every gallon of heating oil. It is a regressive tax because it robs more disposable income percentage-wise from the middle class than it does from that of the wealthy. “

  4. Pingback: CCM to Malloy: Scrap Your Car Tax Plan | Irish Free Press

  5. WildBilly

    Billabong;

    You will get to understand Kim for being a misanthropic old man who lives alone and has anger management problems and who takes his disappointment with life out on liberals who, in his diminished capacity, are the cause of all his perceived wrongs.

    Besides, he is a troll.

    1. Kim

      witness the new, nicer, kinder gentler Bill. His so-called peace offering made it three days this time. Like deja vu all over again.

      Any questions?

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