Municipal Leaders Talk Budget in Hartford – 4/9/2009
CT Local Politics reported that the approximately two hundred representatives from Connecticut municipalities were in Hartford on Wednesday to discuss the difficult choices facing local leaders. Faced with either raising property taxes, laying-off municipal workers or some combination of the two, local leaders discussed possible alternatives.
One such proposal, the ability to enact a local “sales tax”, is a bad idea. Not only is a sales tax one of the most regressive forms of taxation, but the last thing overburdened taxpayers need is another form of taxation on the local level. Such a tax would be unfair not only to local consumers, but would put local businesses at a competitive disadvantage if neighboring municipalities have different tax rates or no tax at all. The current property tax system is already unfair enough as one hundred sixty nine towns tax commercial property one hundred sixty nine different ways.
Voluntary cooperation on a regional level is a better idea. Connecticut is the third smallest state in the union yet provides the overwhelming majority of municipal services within one hundred sixty nine boundaries that were established hundreds of years ago. Most businesses are not restrained by town boundaries. Municipalities should have the option to work collectively to reduce costs to taxpayers.
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