A new month brings new fee and tax increases in Connecticut.
Starting today, the state's cigarette tax jumps from $2 to $3 a pack;
most bottles of water will cost a nickel more because of an expanded
bottle and can redemption law; and hundreds of state licenses and fees,
ranging from a pet shop license to the cost of filing small claims
cases in superior court, will be higher.
States have traditionally raised taxes in past recessions. Yet, those states that did raise taxes suffered no drop in annual growth rates
compared to states that depended on budget cuts alone during
recessions. The reality is that long-term growth is dependent on making
common-sense public investments, even and especially during economic
downturns. This is one reason that the states which collect the
highest percentage of personal income in taxes actually sustain higher income growth.