The incompetent Gov. Dannel Malloy of Connecticut is providing taxpayer money, to the tune of $22 million, to keep Ray Dalio’s Bridgewater hedge fund headquartered in the state. This is the same Ray Dalio who was paid $3.9 billion in 2011 alone. Are you kidding me? This is what happens when the 2 and 20 gang teams up with politicians.
This is not just a Democrat problem. It was started by a Republican as the WSJ points out: “Mr. Malloy’s Republican predecessor Jodi Rell raised the top marginal tax rate to 6.5% from 5% on individuals earning more than $500,000, and Mr. Malloy raised it again to 6.99%. Hilariously, Ms. Rell said last month that she’s also moving her residence to Florida because of the ‘downward spiral’ in Connecticut that she helped to propel.”
You can’t make this stuff up. Get out of Connecticut while you can. The writing is on the wall. Its public pension is the third worst in the country and based on this latest move by Malloy, will result no doubt in higher taxes and fewer services. “Connecticut has lost 105,000 residents to other states over the last five years while experiencing zero real economic growth. Last year it was one of seven states including Maine, Mississippi, Illinois, Vermont, New Mexico and West Virginia with population declines,” writes the WSJ.
Democrats in Hartford this spring attempted to close a $960 million deficit—equal to about 10% of the state general fund—by cutting 2,500 state government positions and creating supposed efficiencies. One result: Six legislative commissions studying the struggles of blacks, Latinos, Puerto Ricans, Asian-Pacific Americans, women, children and seniors were consolidated into two 63-member study groups.
Yet a $1.3 billion gap will blow open in 2018 because the legislature’s budget patches don’t resolve imbalances driven mainly by worker pay and pensions, which this year cost about $1.5 billion. Pensions are less than 50% funded, third worst after Illinois and Kentucky.
So here is the new-old progressive governing model: Raise taxes relentlessly in the name of soaking the 1% to pay off government unions. When that drives people out of the state, subsidize the 0.1% to salvage at least some jobs and revenue. Ray Dalio gets at least some of his money back. The middle class gets you know what.