A sales tax is one of the most regressive forms of taxation, placing a disproportionate burden on lower income families. Our estate tax drives out the very people who hold tax generating assets and wealth acquired over a lifetime.
Joe offers the following creative solutions to these problems while recognizing that the state still needs tax revenue to operate and fund present obligations:
- Phase out the sales tax on goods over 7 years, indexed and tied to GDP. While residents of surrounding states face sales tax rates as high as 8.875%, an elimination of sales tax on goods in Connecticut will increase sales from out of state consumers, commuters, and tourists. This leads to business expansion, hiring, full-time employment, and increased corporate and small business revenue. With the retention and expansion of business without taxpayer subsidy, Connecticut will be positioned economically to pay down deficits and unfunded liabilities through increased revenue from corporate and income tax. At one point during this economic growth, we will be able to then tackle income and corporate tax.
- Phase a reduction of the gasoline tax.
- Eliminate the estate tax which will encourage retirees to stay in Connecticut rather than moving out of state to protect their investments which they wish to hand down to their children. The state would offset this tax reduction with the additional tax revenue on the additional investments held in this state.
- Reduce government spending through a hiring freeze, a spending freeze, and opting out of many nonessential federal programs.