OT: State's Money Moving Out

[bags27]

Editorial: Connecticut's Money Is Moving Out

Connecticut's money is moving out — and a lot of it is moving to Florida.

It's common knowledge now that Connecticut is seeing an exodus of residents. But are the rich leaving? According to the latest IRS data, they are.

Legislators who hope to solve the state's budget crisis with ever-higher taxes should pay attention. The data are clear:

Those who moved out of Connecticut from 2015 to 2016 took with them more than $6 billion in adjusted gross income, or AGI. People who moved to Connecticut brought with them only about $3.36 billion in AGI. The total net loss to Connecticut: $2.7 billion. In one year. That was in the top five of all states, regardless of population.

 

[RockyMTblue2]

It was maybe 25 years ago, give or take, when a CT legislator told me that 1 of every 9 people employed in CT worked for the government and it was a serious issue. Government hasn't gotten any smaller I'm thinking. If only CT had its own currency and could just keep those presses churning.

 

[HoopsFan21]

The wealthy are leaving any state with taxes. Remember when David Tepper left? He is a hedge fund guy worth $10 billion that contributed $100 million a year in taxes to the state and he moved to Florida as well to escape the taxes. The northern states are in for a hurtin' because they have crappy weather and high taxes. It'll be interesting to see the change in political demographics as we see an exodus of generally liberal leaning folks flee to generally conservative leaning states.

 

[RockyMTblue2]

Uh oh, how could it not turn political fast:

 

[HoopsFan21]

How is it political? It's a fact of life that people are leaving northern states. I mean this can't be a secret whether it's the rust belt or northeast. It has nothing to do with politics - people simply don't like the weather or the taxes. Connecticut didn't even have an income tax until about 30 years ago - right around the time they started making massive investments in UConn to upgrade it from a community college to a legitimate university.

 

[BroadwayVa]

Editorial: Connecticut's Money Is Moving Out

Connecticut's money is moving out — and a lot of it is moving to Florida.

It's common knowledge now that Connecticut is seeing an exodus of residents. But are the rich leaving? According to the latest IRS data, they are.

Legislators who hope to solve the state's budget crisis with ever-higher taxes should pay attention. The data are clear:

Those who moved out of Connecticut from 2015 to 2016 took with them more than $6 billion in adjusted gross income, or AGI. People who moved to Connecticut brought with them only about $3.36 billion in AGI. The total net loss to Connecticut: $2.7 billion. In one year. That was in the top five of all states, regardless of population.

People leaving the state of Ct in numbers has been happening for many many years, this is not new. In many cases some moved in for the higher paying Aircraft and Insurance jobs. When those decreased the taxes became a burden. The legislature kept passing "feel good" bills which increased taxes
The State has not yet reached the "point of no return" but it is close..
Full disclousure: Virginia too has been labeled as a state losing more than receiving. Unless you are Fla or Calif (I'd choose neither) your state may be on the losing side. .

 

[BroadwayVa]

How is it political? It's a fact of life that people are leaving northern states. I mean this can't be a secret whether it's the rust belt or northeast. It has nothing to do with politics - people simply don't like the weather or the taxes. Connecticut didn't even have an income tax until about 30 years ago - right around the time they started making massive investments in UConn to upgrade it from a community college to a legitimate university.

Politicians create taxes --citizens pay. If you look back, Ct, all the things that were not taxed that today are taxed, add the increasing "income" tax, real estate, taxes (both of which you can't avoid ) you know how Ct got to this state of affairs.

 

[BroadwayVa]

Uh oh, how could it not turn political fast:

Liked you nuke.

 

[Buckaroobanzai]

A couple of observations about this thread. First, nobody has done any real analysis of the impact of wealth movement out of Connecticut on the future of UConn. That impact will depend on how our elected legislators prioritize our flagship university. Second, even with this loss of wealth, Connecticut has not yet reached pauper stage. Third, the economic future of this state will depend on how our legislators deal with our inadequately funded pension situation. Fourth, none of these situations have anything more than a grossly speculative relationship to UConn women’s basketball.

 

[bags27]

A couple of observations about this thread. First, nobody has done any real analysis of the impact of wealth movement out of Connecticut on the future of UConn. That impact will depend on how our elected legislators prioritize our flagship university. Second, even with this loss of wealth, Connecticut has not yet reached pauper stage. Third, the economic future of this state will depend on how our legislators deal with our inadequately funded pension situation. Fourth, none of these situations have anything more than a grossly speculative relationship to UConn women’s basketball.

I take some of your excellent points (particularly pension funds, though "dealing" with them may not be legally possible), but I didn't draw a direct connection to basketball, only to UConn per se. As someone who has experience with state budget shortfalls and higher education, I can say with some confidence that academic excellence suffers. And quite explicitly Susan Herbst and Geno have said this very thing over the past couple of months.

Now I will draw that connection. One of the things that Geno has been saying pretty clearly is that the recent dramatic increase in UConn's academic reputation has made his recruiting a lot easier. Certainly, schools with lower academic reputations have had good programs also (frankly: UConn is a lot stronger than Tenn, and yet for a long time Tenn was terrific). Just that it could get harder to recruit, and especially harder recruiting students from outside the Northeast.

 

[Sonny44]

I moved out two years ago. But alas, not all that money was mine.

 

[bags27]

Why is thread not OT? I am one of the thousands (millions???) of New Englanders that left the great white (snow) North for warmer climes and don't care about the politics or budget problems of CT until they impact Husky WBB.

Sorry that I didn't precede the title with OT.
OTOH, Geno has been very outspoken the last couple of months about this issue, and every year when the CT legislature votes on the UConn budget, the WCBB team comes to lobby the legislatures on behalf of the University. It is not a separate issue in their minds.

 

[Sonny44]

I take some of your excellent points (particularly pension funds, though "dealing" with them may not be legally possible), but I didn't draw a direct connection to basketball, only to UConn per se. As someone who has experience with state budget shortfalls and higher education, I can say with some confidence that academic excellence suffers. And quite explicitly Susan Herbst and Geno have said this very thing over the past couple of months.

Now I will draw that connection. One of the things that Geno has been saying pretty clearly is that the recent dramatic increase in UConn's academic reputation has made his recruiting a lot easier. Certainly, schools with lower academic reputations have had good programs also (frankly: UConn is a lot stronger than Tenn, and yet for a long time Tenn was terrific). Just that it could get harder to recruit, and especially harder recruiting students from outside the Northeast.

I don't see why it would affect recruiting when our BB athletes are on scholarships.

 

[Adesmar123]

Don't tax you and don't tax me. Tax that person behind that tree.

 

[HoopsFan21]

I take some of your excellent points (particularly pension funds, though "dealing" with them may not be legally possible), but I didn't draw a direct connection to basketball, only to UConn per se. As someone who has experience with state budget shortfalls and higher education, I can say with some confidence that academic excellence suffers. And quite explicitly Susan Herbst and Geno have said this very thing over the past couple of months.

Now I will draw that connection. One of the things that Geno has been saying pretty clearly is that the recent dramatic increase in UConn's academic reputation has made his recruiting a lot easier. Certainly, schools with lower academic reputations have had good programs also (frankly: UConn is a lot stronger than Tenn, and yet for a long time Tenn was terrific). Just that it could get harder to recruit, and especially harder recruiting students from outside the Northeast.

Is there a low or no tax state that has very good public schools? Anecdotally it seems like all those states have terrible public schools and any tax savings is spent on sending your kids to better schools. In Connecticut not too many people are paying more than $15k in income tax, but if you lived in a state with no income tax you'd blow that easily just to send one kid to a private school for one year.

 

[Adesmar123]

Is there a low or no tax state that has very good public schools? Anecdotally it seems like all those states have terrible public schools and any tax savings is spent on sending your kids to better schools. In Connecticut not too many people are paying more than $15k in income tax, but if you lived in a state with no income tax you'd blow that easily just to send one kid to a private school for one year.

I think saying Ct has good schools is the same type of generalization that low tax states have bad schools.

 

[NewCorn]

Unless we do something about global warming, the rich people moving out will in a few years be moving back in.

 

[Adesmar123]

Unless we do something about global warming, the rich people moving out will in a few years be moving back in.

Yeah the new statement is when its hot, its global warming and when it is cold its global warming.

 

[Adesmar123]

PS we will all be in the cesspool soon regardless of Bags27 valiant efforts.

 

[HoopsFan21]

I think saying Ct has good schools is the same type of generalization that low tax states have bad schools.

Yes there are good school districts in low tax states, yes there are bad districts in Connecticut, I thought it was obvious that no one believes that 100% of school districts in any state are all good or bad. U.S. News ranks the top five states for education as Mass, NH, NJ, Conn, and Maryland. How many reputable rankings will put Florida or Texas or Alabama or South Carolina or Tennessee or Kentucky or West Virginia or Kansas at the top of a quality of public education list?

 

[Adesmar123]

Is there a low or no tax state that has very good public schools?

Yeah I think there are a lot of them. But as you said, no state has 100% bad or good schools.

 

[Charliebball]

Ironically, as many thousands move to these low tax states, they will start to put a strain on public services to the point where state income taxes might be considered

 

[Adesmar123]

Ironically, as many thousands move to these low tax states, they will start to put a strain on public services to the point where state income taxes will might to be considered

Good observation....I think there is some history ( although not bankable) with New Hampshire.

 

[UConnNick]

How is it political? It's a fact of life that people are leaving northern states. I mean this can't be a secret whether it's the rust belt or northeast. It has nothing to do with politics - people simply don't like the weather or the taxes. Connecticut didn't even have an income tax until about 30 years ago - right around the time they started making massive investments in UConn to upgrade it from a community college to a legitimate university.

Excuse me, but I attended UCONN more than 30 years ago, and although it didn't enjoy the academic standing and prestige it now does, it was no community college.

 

[UConnNick]

People leaving the state of Ct in numbers has been happening for many many years, this is not new. In many cases some moved in for the higher paying Aircraft and Insurance jobs. When those decreased the taxes became a burden. The legislature kept passing "feel good" bills which increased taxes
The State has not yet reached the "point of no return" but it is close..
Full disclousure: Virginia too has been labeled as a state losing more than receiving. Unless you are Fla or Calif (I'd choose neither) your state may be on the losing side. .

Nobody is leaving Texas.