The Middletown Press (Middletown, CT)
Tax plans detailed at debate
TRUMBULL — The three leading Republican gubernatorial hopefuls bickered over their fiscal philosophies on Wednesday, illustrating their differences on Connecticut’s budget priorities before more than 100 hightech business leaders.
During the event, sponsored by the Connecticut Technology Council, Steve Obsitnik, a Westport tech entrepreneur, held fast to his plan to create 300,000 new jobs in eight years.
Party-endorsed candidate Mark Boughton, the Danbury mayor, continued his promise to end the state’s personal income tax over the next 10 years, prompting rival Tim Herbst, of Trumbull, to offer him a bet.
“I’m going to make a friendly wager with my colleague to the right,” said Herbst of his neighbor on the stage in the Trumbull Marriott. “I bet you we are going get high-speed rail in Connecticut before we eliminate the income tax. That tax accounts for 50 percent of the state budget.”
But business development specialist Marian Breeze, of Milford, wanted more specifics.
“I’ve heard you talk about investing in infrastructure and investing in technology, investing in education, and investing in transportation, at the same time you’ve talked about reducing or in some cases eliminating taxes,” she said during a late-morning question period.
Boughton called for reorganizing state government.
“It’s too big. So we’re going to take this opportunity to eliminate combined departments and, frankly, create greater efficiencies by having less employees,” Boughton said. “We’re far too top heavy with employees. That’s where we’re going to find the savings.”
Boughton said his “pro-growth economy” will encourage investments, including public-private partnerships for transportation projects. But, in a nod to Herbst’s wager, he said a high-speed rail plan estimated to cost $40 billion, is unlikely.
Herbst offered a variety of smaller-scale tax relief, including the elimination of the taxes on wealthy peoples’ estates, the tax on Social Security and business taxes.
“The $200 million that you would lose in estate-tax revenue pales in comparison to the other taxes you are losing when people flee the state of Connecticut,” he said.
The estate tax takes effect for those who die with assets in excess of $5 million. Republicans say it is a big reason why the very wealthy flee the state as they get older.
Budgets are set by priorities, Obsitnik said.
“It starts with the priorities on the customers you are going to hug first,” Obsitnik said. “By hugging seniors with estate-tax and pension relief, a middle-class tax cut for people who make $100K or less and reducing, and potentially phasing out, the corporate business tax — year one — that’s about 3 to 4 percent of our revenue, right? Hugging customers I want to keep here — seniors, businesses and hard working people — I keep their revenue in the state, right, which is important so they can breath and say ‘I can actually live, build a family and retire in Connecticut.’ ”
Obsitnik said Massachusetts state government is about 20 percent more efficient than Connecticut in the delivery of services.
The 90-minute forum was hosted by WTIC radio host Joe D’Ambrosio and co-sponsored by the Connecticut Technology Council and by the law firm of Pullman & Comley. The board of the council has created an agenda for growth that will be presented to the next governor, said Bruce Carlson, president and CEO of the 250-member organization.
During the afternoon session, endorsed Democratic candidate Ned Lamont, of Greenwich, spent about 45 minutes with D’Ambrosio and said the state’s education system needs to be able to dovetail with the thousands of jobs in the new economy, for which there is a pressing need for workers.
“I would love to eliminate the income tax,” Lamont said. “I would love to eliminate the estate tax. I would love to get rid of the corporate income tax, but I think (Connecticut Technology Council) has it right. The first thing you need to give business confidence is to have an honestly balanced budget and that’s going to be my laser focus going forward.”
Lamont says he needs state employees to address the massive unfunded-pension liability.
“I believe in collective bargaining,” he said. “Everyone has to be part of the solution. I want to work collaboratively with labor. I’m willing to take the hit on the tough decisions we’re going to have to make.”