By order of Governor Lamont, the state government is reducing its direct subsidies to businesses entering or expanding into the state – cash grants, discounted or conditional repayment loans, and tax credits. These grants reek of political patronage and corporate welfare, have at times cost more than they earned, have incurred financial risks for the government, and have been unfair to businesses already operating in the state, which do not. receive nothing to stay.
The new idea of ââthe Lamont administration is to subsidize entering companies by reimbursing them part of the income taxes paid by their employees. This would entail little financial and expense risk for the government.
But this system would still not be fair, because unless the line of business of the new company was unique in the state, the state government would always subsidize the new company against its competitors in the state.
Last week, the Yankee Institute came up with a better and perfectly fair idea: eliminate grants, loans and tax credits for new businesses and simply repeal the Connecticut corporate tax.
The Yankee Institute suggests that annual tax revenues for the state government, averaging $ 834 million per year, are not that much, only about 5 percent of general state fund revenue.
This analysis underestimates the problem, since the state government can never bring itself to cut spending at all. But to make Connecticut much more attractive to business, it wouldn’t be necessary to repeal all corporate taxes. To repeal even half of it would send a remarkable signal across the country.
Of course, the state government always promulgates tax cuts for the future and then repeals them when the future arrives. So, to be believed, a corporate tax cut would have to provide a contract for every state business and every incoming business guaranteeing that their tax would not be increased for, say, 20 years. But a big gap between taxes on Connecticut businesses and those in other states could really pay off much better than one-time grants.
* * *
OVERKILL ON DIRECTORY: Pranking high school directories is a tradition almost as old as the directories themselves. What would a high school yearbook be without a degraded photo or a crude caption?
But Glastonbury Police are treating the recent yearbook prank a felony, having charged the suspect, an 18-year-old student, with two counts of third degree computer misdemeanors, each carrying a sentence of up to five years in prison.
It makes the offense look like terrorism.
Meanwhile, young people with 10 or more arrests, many of them on serious charges such as assault, robbery and auto theft, are being released by the Connecticut juvenile justice system without any penalty. and now apparently they’re about to kill people, convinced that the state doesn’t have the self-respect to punish them for anything.
The irony here is likely to turn out to be superficial, as the Glastonbury student will almost surely get equally lenient treatment from the criminal justice system, whose dirty little secret is that it rarely punishes seriously. nobody for nothing less than murder, rarely for a first offense.
If the offenses attributed to the student took place before the age of 18, he can claim âjuvenile delinquent status,â whereby a criminal case is covered up and the offenders can be released, perhaps with a little social work. and without public registration of their misconduct. is maintained.
If the offenses occurred after the age of 18 and he is a first-time offender, the student can apply to the court for âexpedited rehabilitation,â a probation that suspends and eventually cancels the prosecution and clears the charges.
Thus, despite his serious accusations, the student will not go to jail. But as the publicity will make the case harder to clear, the court could grant the student “fast track rehabilitation” subject to a public apology, especially since the directory publishing company, with a generous hand. spectacular, agreed to repair the directories at no cost.
With the turning point being fair play, the best justice here might come if the published newspapers and TV stations broadcast the student’s passport photo with various degradations and a crude caption to see how he likes it.
This could send him on the right path to a career in hacking, politics, or journalism.
Chris Powell is a columnist for the Journal Inquirer.