WalletHub Report: Connecticut Ranks As 4th Worst State To Be A Taxpayer

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Connecticut was recently ranked the fourth worst state to live in as a taxpayer. The redder a state, the higher a tax burden. Green means a lower tax burden.
Connecticut was recently ranked the fourth worst state to live in as a taxpayer. The redder a state, the higher a tax burden. Green means a lower tax burden. Photo Credit: WalletHub.com

FAIRFIELD COUNTY, Conn. -- With tax day fast approaching, WalletHub.com released a report reminding Fairfield County residents that most taxpayers around the country have it better than they do. 

Connecticut was named as the 48th state for taxpayers, with an average annual tax burden of $9,099, or 31 percent above the national average, the study found. 

Wallethub ranked each state in the following categories to come up with its ranking: Real estate tax, state income tax, local income tax, vehicle property tax, vehicle sales tax, sales and use tax, fuel tax, alcohol tax, food tax and telecommunications tax.

If there's any solace for Connecticut taxpayers, it's that neighboring New York was ranked as No. 51, good for dead last (including Washington, D.C.) with an average tax burden of $9718, which is 40 percent higher than the national average, according to WalletHub. 

Wyoming ranked as the best state for taxpayers, with an annual average tax burden of $2365, or 66 percent below the national average.

Alaska, Nevada, Florida and South Dakota rounded out the Top 5.

California, Nebraska and Illinois rounded out the bottom five with New York and Connecticut. 

Click here to read the full report. 

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Comments (36)

Sorry, but Connecticut is still number one.

Check the TaxFoundation website or ITEP. They list the states tax burdens by per capita tax or average tax burden. Search "state local tax burden.

Read the Wallethub methodology for this study. They developed an " average" nationwide profile and computed state and local taxes to fit THAT PROFILE only.

If you earn $66,000 a year, have a home worth $174,000, a car worth $17,000, and fit the other seven factors in the profile, the study applies to you.

If you live in Connecticut and earn $40,000 or $140,000, ( or do not meet the other nine parameters) the study is TOTALLY WORTHLESS TO YOU.

Since this "study" seems to have gone viral without Wallethub making the methodology (and the limitations) of the study clear, in my humble opinion, it is worthless to EVERYONE.

Make that *worse* than useless. It sensationalistic and misleading, and, having been absorbed and mangled by the WorldWideWeb, will now live in eternity.....and infamy.

HARTFORD, CT) – Governor Dannel P. Malloy released the following statement following the release of a letter today from the Office of Policy and Management (OPM) to Comptroller Kevin Lembo detailing Connecticut’s latest revenue and expenditure figures, including a projected state budget surplus that has risen to more than $500 million:

“Today’s letter highlights the continued progress we have made in turning a record-setting $3.6 billion deficit to a surplus of more than $500 million, while at the same time making smart investments to improve our education system and grow jobs.

“Overall, the rate of budget growth under this administration is lower than those of my predecessors. For too long, our state had been putting off the tough decisions needed to get our fiscal house back on track and keep it there. While the work isn’t done yet and we must continue working to improve the state of our state, thanks to the efforts of many people in our state, we’re seeing progress.”

In addition to the letter, OPM also released statistics showing that the growth rate of state government is at its lowest level in decades:

Mr. President, Mr. Speaker, Senator McKinney, Representative Cafero, ladies and gentlemen of the General Assembly, honored guests, and all the citizens of our great state watching or listening today – thank you for inviting me to address you.

As always, let us thank and honor the brave men and women of Connecticut serving in our Armed Forces around the globe.

I’d like to recognize my wife Cathy and my son Dannel who are here today.

The State of Connecticut could not have a better Lt. Governor, and I could not have a better friend, than Nancy Wyman. Thanks to Nancy’s hard work, Connecticut is leading the nation in getting people signed up for affordable care.

Introduction

I want to begin today with a story that I think says a lot about who we are in Connecticut, and where we’re headed.

This past December I visited a small business owner named Steve Weinstein. Steve runs a farm in East Hartford that was devastated by the February snowstorm that blanketed our state last year.

Much of his property was left unusable. He lost 80 percent of his production capacity. His business was close to failure.

Steve had a choice to make. What did he do?

He dug in.

He pushed ahead.

He did the hard-but-necessary work of rebuilding.

Today Steve’s company is back in business sending locally grown products to towns and cities across Connecticut. He isn’t back to 100 percent – rebuilding takes time – but thanks to his hard work and just a little help from the state, he’s making real progress, and he’s part of Connecticut’s economic recovery.

That kind of resilience is inspiring. And yet, it’s something that I see almost every day in the people of our great state.

Mark Twain called Connecticut “the land of steady habits,” and through our long and storied history, many of those habits have driven us to accomplish great things. Our courage helped found this country, and our ingenuity helped spur the industrial revolution.

In recent years our habits have carried us through some difficult times, as well: through the great recession, through storms that battered our homes and our businesses, and even through our darkest day just over one year ago. Time and again, Connecticut has demonstrated a resolve and a devotion that has carried us forward.

Unfortunately, there’s another side to our steady habits – one that hasn’t served us quite so well. Over time, certain bad habits have kept Connecticut’s government from keeping up with a changing world.

Putting off hard decisions left our state with a deficit that was among the worst in the nation just three years ago.

Bouncing from one economic development strategy to the next sent mixed messages to employers.

And a tendency to shy away from big changes kept Connecticut from making desperately-needed investments in our energy infrastructure, our affordable housing stock, and our schools and colleges.

I say this not to lay blame for past problems, but because those who forget their history are doomed to repeat it.

I say it so that we can understand what we’ve changed, and precisely what that change has meant to the people of Connecticut:

More than 40,000 new private sector jobs grown over the past three years, spread throughout every region of Connecticut;

An unemployment rate that has gone from a high of 9.4 percent in 2010, down to 7.4 percent today;

Home values that are finally on the rise after years of decline;

Crime rates that have dropped to a 46-year low;

A plan in place that will bring cheaper, cleaner, and more reliable energy to Connecticut;

A state that now ranks nationally as top five in energy efficiency, top four in worker productivity, top three in the number of advanced degrees, top two in production efficiency, and number one in the health of its citizens.

Our work hasn’t been easy. No person – and certainly no government – is perfect. Lord knows I’m not. All of our progress has come with setbacks along the way.

But together we’ve proven that positive change, while hard, is possible. That progress is possible.

That’s what I want to talk to you about today:

How together we’re making positive changes, and seeing real progress.

How we must ensure that hardworking families share in that progress, and share in Connecticut’s recovery.

And how, in order to keep this recovery going, we need to continue making thoughtful, even bold investments in our future, and in the future of our children.

Responsible Budgeting and Tax Relief

Let’s talk about how we’re achieving some of that positive change. For one, together we’re making hard-but-necessary budget decisions.

A big part of growing an economy that’s built for the long-term is making sure state government is living within its means and controlling its debt. For too long Connecticut ignored that responsibility, racking up deficits and letting our long-term debt grow larger and larger.

It all came to a head in 2009. The budget that eventually went into effect borrowed $1 billion for operating expenses, it drained every penny from a $1.4 billion rainy day fund, and it deferred $50 million in required pension payments, part of more than $300 million in payments that would be deferred over the next three fiscal years.

Think about that. In one fell swoop, the State of Connecticut undertook the largest deficit financing in its history, used up its entire savings, and refused to pay its pension obligations.

Today, after a lot of tough decisions and strong leadership from many people in this chamber, we’ve come a long way:

Together we’ve turned a $3.6 billion deficit into a $500 million surplus;

We’ve cut our total long-term debt by more than 11 and a half billion dollars, the equivalent of $3,200 for each and every man, woman, and child in Connecticut;

And we’ve already put more than $270 million into our rainy day fund.

What is it with the right wing that they completely fabricate numbers. This is why the Republicans are considered a joke.

NEW HAVEN >> Gov. Dannel P. Malloy Thursday proposed putting the projected $506 million state surplus into savings, debt reduction and a small sales tax and gas refund to taxpayers of $55. Malloy has been rolling out plans in anticipation of the opening of the legislative session and his state of the state address on Feb. 5. The governor wants to deposit $250 million into the Rainy Day Fund, which would bring the balance to more than $520 million, while he also proposed increasing the maximum size of the fund from 10 percent of state revenue to 15 percent. Three years ago when he took office, the state’s budget reserve was zero and Malloy said he will submit legislation that going forward that would mandate that future surpluses be used specifically for savings, paying down debt and some kind of tax relief. “To come into office with a $3.6 billion deficit with no money in the Rainy Day Fund and billions of dollars borrowed on Wall Street to prevent the hard decisions that needed to be made, no governor in the state of Connecticut should ever have to inherit that again,” Malloy said. He said a constitutional amendment to mandate use of savings would not have impacted the next biennium’s budget. On sales and gas tax refund, Malloy said it would give $55 to individuals earning less than $200,000 and $110 to joint filers earning less than $400,000, which he projected would put $155 million into the economy. This would benefit an estimated 2.7 million individuals, Budget Chief Ben Barnes said. “This is the best way to get money to middle class families and we are supporting middle class families,” Malloy said of the tax refund. The money will be sent as a separate check, rather than as part of an income tax refund, which Barnes said would not be taxed, as the state did in 1999. A similar refund in 1998 was taxed. Malloy also wants to make an additional $100 million toward the state’s pension obligations. “With $100 million going into the pension plan this year will reduce our over all obligations by $430 million,” Malloy said, referring to the period over 20 years. The governor, who has not announced yet whether he will seek re-election, said putting together his plan for savings and debt reduction, exceeds what Republicans have offered. “The Republicans are great. On Monday, they denied that there was a surplus and on Wednesday they tell us how to spend it. It is really remarkable,” Malloy said. Last week Republicans proposed $247 million in tax relief by eliminating the special assessment businesses pay to the unemployment fund; speeding up restoration of the $50 tax exemption on clothing and footwear as well as the tax exemption on over-the-counter drugs. They would also keep the Earned Income Tax Credit at 25 percent of the federal EITC, rather than returning to the 30 percent the state had last year. House Minority Leader Lawrence Cafero, R-Norwalk, estimated there is $940 million in “excess” funds in the budget this year, which he said includes the current $271 million in the Rainy Day Fund, the $506 million budget surplus and $160 million in increased revenues. He said the bulk of this “excess” should be used for debt reduction. He characterized the $247 million tax cuts as revenue neutral.

Connecticut is broke. Not going broke, but broke right now. Today.

Our latest balance sheet on the full-accrual method — that is like what businesses use — tells us we have $52 billion more in debts than we have assets to pay those debts. There is no rainy day fund (money set aside for the future), but rather, quite the opposite. We are down a $52 billion hole.

How much is $52 billion? If you were to stack $1 billion of tightly bundled $1 bills, the stack would be 63 miles high. That means $52 billion of $1 bills would cover the distance between Hartford and central Alaska; that is 3,276 miles!

The $500 million budget surplus is merely the difference between the current year's budget and the projected actual results. Unfortunately, the $500 million budget "surplus," if it comes to be, is just a drop in the bucket of what we need to dig ourselves out of our $52 billion hole. On our $52 billion path to Alaska paved with $1 bills, we would hit the $500 million mark in Waterbury — certainly a long way from the Land of the Midnight Sun.

In nearly every financial comparison of the nation, Connecticut ranks among the worst in fiscal health, if not dead last, the result of decades of poor, short-sighted financial decisions and politicians not wanting to make the tough decisions or not understanding the total picture. Another words years of democratic control of the house and senate. This is what happens when one party a socialist party is put in control.

Guess you did not read the article DD We are almost dead last because of the democratic controlling both chambers for many many years. Now that the Governor is a socialist those socialist dems in the house and senate will sink this state for good. dream on DD

Thankfully Governor Malloy has repaired the many years of destruction caused by past Republican Governors.

But who exactly is Wallethub? I never heard of them. What credibility do they have?

About as much as Malloy!!

The Republicans claim that Governor Malloy has no credibility however they provide Zero facts to back up the claim. It seems they are the ones lacking credibility.

Like Malloy has credibility?Only on planet Libkook.

Gov.Scott Walker,in blue state Wisconsin,a Republican,is kicking liberal ,union loving butt.He is running a real surplus,not the charade Malloy is claiming.He has a 3.4 unemployment rate,is cutting taxes,and making all the lefties look like fools.Thats how we do it.

Wisconsin Gov. Scott Walker under fire in campaign finance probe
Gov. Scott Walker transferred $40,000 in campaign funds late last year to his legal fund set up to pay two high-priced criminal defense lawyers to represent him in the lengthy John Doe investigation.

Walker's campaign sent the money to The Scott Walker Trust on Dec. 31, according to campaign records filed Thursday. That brings the total dollars transferred to the defense fund to $200,000.

UPDATE: Records filed Friday with the Internal Revenue Service show the $40,000 was split between the law firms for Walker's two defense lawyers, with $25,000 going to the Milwaukee firm of attorney Michael Steinle and $15,000 to the Chicago firm of former federal prosecutor John Gallo.

The payments were made on the last day of 2012.

"The transfer covers work done to cooperate with authorities over the past year," said Walker campaign spokeswoman Nicole Tieman.

The first-term Republican governor has said repeatedly that he is not a target of the probe into activities during Walker's tenure as Milwaukee County executive. The investigation has led to criminal convictions against six individuals, including three ex-Walker aides, one appointee and a campaign donor.

Tieman declined to respond to talk in the legal community that Walker may be shutting down the fund. Retired Appeals Court Judge Neal Nettesheim, who is overseeing the John Doe probe, said Thursday that he had not previously heard anything about that.

County prosecutors opened the secret public corruption investigation in May 2010. Walker announced last year that he had hired Gallo and Steinle to assist him in the case.

Walker sat down with prosecutors in Milwaukee County District Attorney John Chisholm's office for what sources have described as a lengthy and contentious session during the late spring. The investigation has quieted considerably since Walker won his recall election in early June.

Last year, Walker transferred $160,000 in campaign donations to the defense fund.

From that, the trust paid $115,000 to Gallo's firm; $29,200 to the Steinle's firm; and $1,300 to the Madison law firm of Lind Weininger. It also doled out nearly $10,000 to APCO Worldwide, a public relations firm.

That left the fund with a balance of $4,511.

In addition, Walker's campaign has been represented by former U.S. Attorney Steven Biskupic, formerly of Michael Best & Friedrich, since November 2010.

Records show the campaign has paid Michael Best $8,485 in August, bringing the total payments to the firm to nearly $200,000 for "compliance" issues. Biskupic left Michael Best to start his own firm last month

Connecticut was recently ranked the fourth worst state to live in as a taxpayer. Read the article and weep!! What a bunch of dummies. The governor raised the gas TAX 2 times and now he is reducing it . You people are brain dead. We pay one of the highest fuel taxes on the planet. That means energy costs for business is to high and business ion turn heads for the door. CT is one of the worst business friendly stats bar none. You progressives beat all. Just the gun companies this dummy Governor beat up cost the state 1.1 billion.

Now for the truth
The most miserable states in the USA
10. Louisiana
9. Oklahoma
8. Missouri
7. Tennessee
6. Arkansas
5. Ohio
4. Alabama
3. Mississippi
2. Kentucky
1. West Virginia
One thing they ALL have in common all republican states

So once again it appears to me at least
that the only way to keep a company from closing its doors is to bribe them with forgivable loans.

Something is seriously wrong with a state having to give forgivable loans to any company to keep them
here in the state of Connecticut or to even entice companies to come here to do business at all.

It would seem that the real solution to this problem would be to look at the state corporate tax structure and
make modifications to make Connecticut more appealing to companies.

• The largest - $1.5 billion - tax increase in state history.

• A state employee concessions package that would freeze wages, curtail retirement benefits and promote both preventative health care and leaner government.

• The merger of 82 agencies down to 58.

• Cuts to public colleges and universities that would, he hoped, boost tuition no higher than inflation.

With a gap of $1.2 billion projected for the fiscal year that starts in July, Malloy not only is seeking more sacrifices, but he's also turning to taxes and some of the gimmicks he swore off two years ago.

He has proposed:

• Extending expiring tax increases on businesses and power plants.

• Reducing tax credits for working poor families.

• Cutting more funding to colleges and universities, even as tuition and fees continue to rise beyond inflation.

• Making deep cuts to hospitals and in health coverage for thousands of low-income adults.

• Raiding the transportation fund.

• Borrowing hundreds of millions of dollars to pay ongoing bills.

NOW FOR THE TRUTH

MODERATOR THIS IS NOT AGAINST THE TOS ...DO NOT ROMOVE OR I WILL ONCE AGAIN EMAIL THE CEO OF THE DV ABOUT YOUR BIAS

NEW HAVEN >> Gov. Dannel P. Malloy Thursday proposed putting the projected $506 million state surplus into savings, debt reduction and a small sales tax and gas refund to taxpayers of $55. Malloy has been rolling out plans in anticipation of the opening of the legislative session and his state of the state address on Feb. 5. The governor wants to deposit $250 million into the Rainy Day Fund, which would bring the balance to more than $520 million, while he also proposed increasing the maximum size of the fund from 10 percent of state revenue to 15 percent. Three years ago when he took office, the state’s budget reserve was zero and Malloy said he will submit legislation that going forward that would mandate that future surpluses be used specifically for savings, paying down debt and some kind of tax relief. “To come into office with a $3.6 billion deficit with no money in the Rainy Day Fund and billions of dollars borrowed on Wall Street to prevent the hard decisions that needed to be made, no governor in the state of Connecticut should ever have to inherit that again,” Malloy said. He said a constitutional amendment to mandate use of savings would not have impacted the next biennium’s budget. On sales and gas tax refund, Malloy said it would give $55 to individuals earning less than $200,000 and $110 to joint filers earning less than $400,000, which he projected would put $155 million into the economy. This would benefit an estimated 2.7 million individuals, Budget Chief Ben Barnes said. “This is the best way to get money to middle class families and we are supporting middle class families,” Malloy said of the tax refund. The money will be sent as a separate check, rather than as part of an income tax refund, which Barnes said would not be taxed, as the state did in 1999. A similar refund in 1998 was taxed. Malloy also wants to make an additional $100 million toward the state’s pension obligations. “With $100 million going into the pension plan this year will reduce our over all obligations by $430 million,” Malloy said, referring to the period over 20 years. The governor, who has not announced yet whether he will seek re-election, said putting together his plan for savings and debt reduction, exceeds what Republicans have offered. “The Republicans are great. On Monday, they denied that there was a surplus and on Wednesday they tell us how to spend it. It is really remarkable,” Malloy said. Last week Republicans proposed $247 million in tax relief by eliminating the special assessment businesses pay to the unemployment fund; speeding up restoration of the $50 tax exemption on clothing and footwear as well as the tax exemption on over-the-counter drugs. They would also keep the Earned Income Tax Credit at 25 percent of the federal EITC, rather than returning to the 30 percent the state had last year. House Minority Leader Lawrence Cafero, R-Norwalk, estimated there is $940 million in “excess” funds in the budget this year, which he said includes the current $271 million in the Rainy Day Fund, the $506 million budget surplus and $160 million in increased revenues. He said the bulk of this “excess” should be used for debt reduction. He characterized the $247 million tax cuts as revenue neutral.

Thank You Governor Malloy for getting us out of the disaster created by past Republican Governors. Thanks to the Democrat Malloy now have a 500 million surplus.

Hartford – As the rest of the country begins to come out of the economic recession, Connecticut’s economy is still stuck in a dismal economic climate, ranking dead last in the country in economic growth. There are several factors impacting Connecticut’s economy, high unemployment rate (around 8%), stagnant job market, and other states improving at a quicker rate and becoming more enticing for employers. The state’s budget is not a picture of health either as different parts of the budget have been raided or loans incurred to cover basic operating expenses. All these factors further prove that one party rule, regardless of political persuasion, is not good for any state and has been detrimental to Connecticut.

The Democratic controlled legislature has done little to improve the health of the Connecticut economy; the Department of Commerce’s Bureau of Economic Analysis said that Connecticut’s economy contracted for the second year in a row. These trends have not been lost on state businesses as a recently released survey by the Connecticut Business and Industry Association (CBIA) and BlumShapiro revealed that over 80% of the responding businesses have a negative opinion of conducting business in Connecticut.

Furthermore, Connecticut has received nothing but failing grades. According to the Cato Institute, Malloy’s economic policies have not only failed, but have created a “more hostile climate for businesses in general, but then tries to compensate for the damage with tax incentives” (http://object.cato.org/sites/cato.org/files/pubs/pdf/GRC2012.pdf). Governor Malloy and the state Democrats have not listened to the requests of the business community for tax cuts, spending cuts, and reduced regulation. The governor introduced and passed a $2 billion tax increase, which has only increased the burden felt by both employers and residents. It seems as though these ideas have not been accepted as an option by the governor or the Democratic majority. Connecticut’s other failing grade comes from our unfunded pension liabilities. According to the Wall Street Journal, Connecticut has the 4th largest unfunded liability in the country (http://www.marketwatch.com/story/10-most-threatened-state-pension-plans-2013-09-13). The control of one party over the finances and policy of a state has proven ineffective at increasing

A. Powers
You already posted this lie and had it removed and here you are again posting factless propaganda..
Amazing

You are all correct. Both Dems and Reps dug this hole we're in! But blame dopey voters (that would be you) for handing them the shovels...

Vote for fiscal conservatives only.

CT is on-track to become the next Detroit. Congratulations. Thank you, Democrats.

Johnny
That was the case when the Republicans were in charge. Now thanks to the Democrat Malloy the state has a 500 million Surplus

This is all due to the disaster created by years and years of Republican right wing Governors (Moderator I see that you have been removing all left wing factual posts, while allowing lies , propaganda , name calling and factless posts by the right wingers . If this continues I will be forwarding screen shots of all posts involved to the CEO of the DV.. Its pretty clear the moderator has taken his or her personals views and put them before being a true news source

Robby, I have to agree with you about those R governors who supported the always Democrat laden senate and house votes in Hartford.....what a disappointment!

oneofthepeople
The fault is at the Governors desk as the buck stops at his desk not the state house.

Well, it looks like the Blue states have to fund the Red states as usual, as it's been for years. I know this annoys many of you out there but when you look at the numbers, the red states get more from the feds than they put in. Is this part of how you feel your financial beliefs are superior?

Of course the state is run by tax and spend dems and they love to fund there give away programs. John Bainer just lashed out at Malloy for scamming the food stamp system. Everywhere you leak this state holds a BUCKET!!

When you say tax and spend the facts show the Republicans are the tax and spend group ..Blaming the dems is just right wing propaganda and lies.

How long has CT's legislature been controlled by the Democratic party? This crisis began back when Lowell Weicker opened Pandora's box and introduced the income tax....now we have ever increasing income taxes, to accompany sales taxes, real estate taxes, gas taxes etc and so forth. Malloy is an embarrassment to Stamford and has done NOTHING to rein in the deficits in the State but for launching the largest tax increase in the State's history....CT's problem resides in Hartford with a Democratic governor complicit with a Democratic controlled legislature that can not rein in spending. CT has a massive unfunded legacy obligation burden that can only be addressed by changing the existing pension and healthcare plans. No where can you get these programs but the public sector. Further, public sector compensation no longer is below the private sector. CT is a leader in the race to the next Detroit.

Odd as you seem to be the one blaming Governor Malloy over and over again for taxes>>Make up you mind Kenny you can't have it both ways.

I'm shocked!! I thought we'd be #1 for sure.

You are, actually. Wallethub's data has been misinterpreted.
What they label as "average" annual state & local taxes" is not.

It is not the average tax burden. Not the median tax burden. Nor the per capita tax burden.

It is the calculated tax for a VERY specific cohort. You should ask Wallethub or the Daily Voice to explain it. How they calculated it. And why?

What do you expect from the Give Away generation---Some one has to pay the Bill !!!!! Check out the cost of CT the Give Away State !!!!!