Every year the Tax Foundation, a nonpartisan educational organization, calculates each state’s “Tax Freedom Day.” Tax Freedom day is the date when residents have earned enough money during the year to pay their combined local, state and federal taxes, and begin to keep what they earn. Connecticut’s Tax Freedom Day has been calculated as May 5th this year – the latest occurring in the nation because Connecticut has the highest tax burden per capita of any state.
The unfortunate distinction of having the latest occurring Tax Freedom Day is due in part to last year’s historic $1.8 billion tax increase – the largest tax increase in state history. Rep. Smith opposed the tax hike, and believes that state government should instead be reducing spending, increasing efficiency and becoming more responsive to the needs of residents and businesses within its means. The stifling tax burden in Connecticut contributes to a still-sluggish state economy and inhibits businesses from making the long term investments necessary to create jobs. Tax Freedom Day comes on the heels of the Department of Labor’s announcement that Connecticut lost 2,700 jobs in March.