Missing the Point

Recently the Connecticut State Legislature override the Governor's veto of the minimum wage increase. Overlooked in the discussion was the cost of living in Connecticut. Maybe the minimum wage increase would have not been needed if the cost of living in Connecticut had not gone out of control. A trip to Massachusetts this past weekend showed a perfect example of Connecticut's cost. I was able to purchase gas at $3.99 per gallon while the price in my own neighborhood in Connecticut was hovering around $4.42. Even the Mass Pike was selling it for $4.15. The record run up in gasoline prices also resulted in a record revenue of gas taxes especially the gross receipts tax which is indexed to the price of gasoline. Since 62% of the gasoline taxes goes to the general fund, the legislature has had more money to spend. But they still have run up more expenses than they have revenue. So the legislature has missed the point. If the cost of living in Connecticut was lower, there may have been no need for a wage hike. The answer is don't spend so much. A concept that each citizen has been forced to understand but seems to have escaped the state government. Remember when the state income tax was going to be a temporary fix to solve a budget shortfall? What happened? Government, and that seems to mean the Democratic State Legislature seems to be addicted to spending. Expenditures are not being scrutinized and budgets just seem to balloon. The legislature needs to get the message that we have had enough of the out of control spending and that the brakes have to be put on. We should have a top down examination of every departments budget to see what waste can be eliminated, and what efforts are duplicated. Only then should the legislature come to the taxpayers for more.


The world oil demand has been larger than the oil supply since the fourth quarter of 2006 by 1 million barrels per day. The Democrats are blaming it on greedy oil companies and speculators in the commodities markets. But the Democratic Congress has missed the point and gone after an industry making an average 8.5% profit. When the demand and supply numbers are out of whack, any change in the supply or even futures speculators can affect the price of gasoline. The Congress should being doing everything they can to increase the supply by approving drilling offshore and moving ahead with oil shale processing rules. Even if the results of these projects are 5 to 10 years out their will be an immediate psychological
affect on the markets and we will need the increased supply in the future. Even though we may conserve, the world demand will increase as China and India can't cut back as that would require dropping subsidies, which neither government will do for fear of losing power.

Both the Democrats in the Connecticut State Legislature and in the Congress have missed the point on both these issues.

The following comment was sent to Sen. Lieberman, Sen. Dodd and Rep. Murphy:

I am writing to request you change your vote on drilling for oil in ANWR and off the coasts. Cuba with the help of China will be drilling 60 miles off the coast of Florida. They will not care if our beaches are contaminated by a spill. If we control the oil in the region, we can ensure drilling techniques that are safe. Increasing output no matter how small is the only way to bridge the gap until alternative energy sources are online. Also the oil companies make an average of 10% profit. Our last refinery was built in 1976. Oil companies are not the cause of high oil prices. Supply is. Telling oil exporting countries to send more is not the answer. We need more drilling. I will be encouraging everyone I know to contact you on this matter until Congress has taken appropriate measures.

Gas Tax increase-revisited

My latest post also appeared in the Waterbury Republican-American in a letter to the editor today. This is the same day the state announced it will not institute the increase of a half-percent on the gross receipts tax. The Governor said she will find the $25 million needed to cut to offset the costs. This is an admirable step but the state government needs to continue cuts.
In an election year, I'm not surprised that they finally saw the error of their ways.
The government needs a bottom up analysis of each departments goals and staffing levels. It would also help if they put out a report card of where the revenue comes from and where it goes with as much specifics as possible. Since 62% of the gas tax goes into the general fund, it is not being spent as originally designed, for transportation. So I get upset when I hear we need increases in a tax for transportation. If they spent the gas tax as intended, people would see a direct benefit from the tax. As it is now, they see 62% wasted.

Gas Tax Increase

On July 1, the Democratic controlled Connecticut Legislature will impose another insult to the Connecticut taxpayer. The Connecticut’s gross receipts tax on petroleum products will increase to 7.5% from 7%. According to the state Office of Policy and Management, for Fiscal 2008, which ends June 30, the state originally project­ed collecting $297 million from the gross receipts tax. It recent­ly revised that figure to $350 million — an increase of $53 million, or 18 percent. Our Connecticut legislatures in Washington are promoting a windfall profits tax on oil companies. But the windfall profits are being made by the state. Only 38% of the money goes to the transportation fund. The rest goes to the general fund. Diesel fuel also will get an 8 cent boost. The oil companies make about 8-10% profit. The value of the dollar has a large affect. But the state and federal government should give the taxpayer a break and cut spending like the taxpayer has to do.