In the News
Boughton Calls on Malloy to Sign an Executive Order Allowing Early Tax Payments
Boughton says Malloy choosing politics over helping middle-class families
Today, Danbury Mayor Mark Boughton demanded Governor Dan Malloy join the states of New York and New Jersey in ensuring institutions accept early tax payments before January 1, 2018 when new tax reform laws take effect.
“Signing an executive order is a great way to help families save money. Because Connecticut has such a high tax burden, we are not benefiting from the tax relief that the rest of the country is going to receive. Governor Malloy has a chance to lend a hand to working families and he has decided to snub them for the sake of petty politics. This is simply not right,” said Boughton. “What’s clear is that Dan Malloy has chosen once again to ignore the struggling people of Connecticut. It’s time for new leadership. We need someone who is focused on our resident’s needs,” added Boughton.
Issuing an executive order for all municipalities to accept early payments creates a uniformity through our state, and enables our residents to reduce their tax burden. The choice to prepay taxes should be available to all residents regardless of where they live.
Boughton back at work at Danbury City Hall
DANBURY – Don’t be surprised if Mayor Mark Boughton says something surprising as the November election season matures, and he makes a decision about a 2018 gubernatorial run.
Emergency life-saving brain surgery can affect a man that way.
“I do think there is a message here about how to look at things – differently,” said Boughton on Monday, his first official day back at City Hall after treatment to remove a benign brain tumor. “I have always thought I have been very compassionate, but this has taught me things.”
A man of faith, Boughton has been candid with The News-Times about crying and praying for forgiveness the night before his surgery as he felt the weight of his life upon him.
“Those are long days when you’re alone – I mean my sisters were there and they were awesome – but I was in ICU and they could only be there for two hours at a clip,” Boughton said. “You are alone a lot and you start thinking about all this stuff.”
Boughton appeared refreshed and collected in a blue tweed sports coat and a new scar curving above his left ear. His third-floor office at City Hall was decked with a welcome-back banner, balloons and get-well cards.
“I didn’t get called home, so I may be looking at things a little differently,” he said, sitting down to a desk of presents and papers to sign. “I am going to think about it some more, and when issues arise you very well could hear something different from me than you have heard before.”
Boughton, one of the GOP’s leading candidates for governor, plans to decide whether to run after the November 7 mayoral election, where he is seeking an unprecedented ninth two-year term.
A self-described compassionate conservative, Boughton is the second top-tier GOP gubernatorial contender to undergo serious surgery this year. In the spring Trumbull First Selectman Tim Herbst had surgery to treat thyroid cancer.
Boughton’s first priority is to get back to full strength – a goal that may take no longer than one month to reach, he said, by gradually increasing exercise and workload.
Although he is not yet back to work full-time, Boughton said he is back in spirit 100 percent.
The mayor’s fans, who know he likes to joke, sensed he was back to his old self last week, when he appeared for his usual Thursday morning radio spot and said he needed brain surgery like he needed a hole in the head.
The truth is Boughton started telling jokes as he came out of anesthesia.
“I was coming out of it with the surgeon and the anesthesiologist and nurses, and I was making jokes but they weren’t making any sense, except to my sisters,” Boughton said on Monday. “So my sisters, who have been with me for 50 years, knew what I was trying to say and they were laughing, but the doctor is like ‘Oh, no. What did I do?’”
Boughton: Income tax phase-out is one piece of 10-year plan
Mark Boughton: A Plan to Phase Out the Income Tax
It’s not surprising Aetna has decided to move its corporate headquarters out of Hartford, but the lack of surprise does not make it less of a jolt to our state’s failing economy. Meanwhile, the same old refrain regarding tolls, the legalization of recreational marijuana, and “taxing the rich” for more revenue keeps coming from media pundits and politicians at the Capitol.
Connecticut flourished as a state without an income tax. Our cities thrived, our population grew, people had good jobs that supported a family and the most vulnerable had a safety net they could count on.
Like it or not, Connecticut is in a regional competition with states like Massachusetts and New York for jobs, and the businesses that create those opportunities. Since the implementation of the state income tax, Connecticut has become less affordable for residents and much more anti-business than our neighboring states. When Massachusetts seems like a tax haven compared to Connecticut, you know we have a tax issue that we must wrap our collective arms around.
How can we afford to repeal the income tax? Connecticut must acknowledge that this a critical moment for our state. Under our current tax structure, we are in a perpetual state of financial crisis. We have an opportunity to dramatically reshape state government, including eliminating the income tax. The writing is on the wall and our current path is clearly unsustainable. The reality is we cannot afford to keep this tax in place. Nothing short of bold leadership and dramatic change will stop the bleeding.
Nine states thrive without an income tax. According to Forbes Magazine, economic growth in those states grew nearly 50 percent faster between 1998-2008 than it did in the nine states with the highest top personal income tax rates. Job growth climbed more than twice as fast in those states without income taxes, compared to the states with the top income tax rates. We need to look at these success stories and implement similar fiscal policies here in Connecticut to get our economy moving.
Many will argue that eliminating the income tax will unfairly benefit the wealthy, but the opposite is true. When the income tax was implemented, it shifted the tax burden from our wealthiest residents onto the middle class because the income tax replaced the capital gains tax of 7 percent, as well as 14 percent tax on major interest. Promises that the income tax would reduce property taxes never materialized, only adding to the pain of Connecticut’s families. Simply put, eliminating the income tax will benefit all of Connecticut’s residents regardless of socioeconomic status.
We need to focus on core state government services such as plowing highways, educating our youth, keeping people safe and ensuring that those who cannot care for themselves receive the help they need. I have always been an advocate of these core government services and that will not change. When we talk about innovation and reform one example that should be employed is the creation of an education equity fund that would remove state education dollars away from the political process and toward a more impartial procedure.
There is no simple, painless way with which to eliminate the state income tax. But I am committed to working with the best and brightest to restore Connecticut to its former glory. Our plan to eliminate the income tax is a comprehensive approach. It redesigns and reorganizes state government and examines the nexus between municipalities and the state.
Connecticut is a great place to raise a family and we have wonderful schools and tremendous talent. We need to get back to a sustainable, and most importantly attractive, pathway forward. I am willing to ask the tough questions and to have the hard conversations.
Mark Boughton, a Republican eight-term mayor of Danbury, is exploring a run for statewide office in 2018.
Boughton pushes for state income tax repeal
Mark Boughton is molding himself as the anti-Lowell P. Weicker Jr.
The longtime Danbury mayor — trying to separate himself from a pack of Republicans with gubernatorial ambitions — wants to abolish the state income tax ushered in by Weicker a quarter-century ago.
Connecticut has a spending problem, not a revenue problem, said Boughton, who blamed the income tax for the exodus of residents and businesses to other states. Since it came onto the books, he said, the state has lost $13.7 billion in net adjusted gross income.
“Obviously, one only has to look at companies like Aetna and GE,” he said. “I recently met with some portfolio managers in lower Fairfield County. Probably 70 to 80 percent of them are leaving.”
The concept quickly drew plaudits and skepticism during a recent rollout by Boughton, who is raising money for a presumptive run for governor in 2018, in what would be his third shot at the state’s top office. The income tax accounts for $9 billion of the $15 billion in annual tax revenue collected by the state.
“I tell Mark Boughton to get with the real world,” Weicker said. “We’re way past the point in this state where that’s in any way conceivable. All that’s going to mean is a huge sales tax, and that will really hurt the lower-income families in our state.”
History of Controversy
Weicker, a former U.S. senator and ex-Greenwich first selectman, said his immediate successor vowed to do the same as Boughton proposes.
“This is what John Rowland said he was going to do,” Weicker said. “I’m sure we’d all like to get rid of it. Just take a look at how much in debt we are with the income tax. You’re obviously going to have to raise corporate taxes, the very thing you’re trying to avoid.”
But Boughton’s stock among conservatives, led by CNBC’s Larry Kudlow, appeared to be on the uptick with his call to repeal the state income tax. The one-time Ronald Reagan budget guru and Redding resident tweeted “Right On!” at Boughton Monday night.
“It’s the right spirit,” Kudlow told Hearst Connecticut Media. “I don’t know if it’s the right precise policy. Whichever Republican runs in 2018, they’ve got to understand this: You’re not going to balance the budget or significantly reduce the deficit or, for that matter, attract new people and new businesses to the state unless you have growth-oriented tax cuts across the board. If the GOP runs root canal with Novocaine — just cutting the budget, cutting pensions for state workers and so forth — they’re not going to win.”
On top of the income tax, Kudlow said, taxes on corporations, property and inheritance, as well as regulations, make Connecticut one of the least competitive states.
“Who the hell wants to move to Connecticut?” Kudlow said. “It’s a tragedy. It’s a great state.”
S.E. Cupp, the conservative CNN talking head, also took notice of Boughton’s proposal.
“Yaaaassss, @MayorMark,” she tweeted Tuesday.
Boughton can use the additional exposure in a logjam of Republicans with gubernatorial hopes, which includes Tim Herbst, Trumbull’s first selectman; Peter Lumaj, the GOP’s 2014 nominee for secretary of the state; and Dave Walker, the former comptroller general under Presidents Bill Clinton and George W. Bush.
Also on that list are Mark Lauretti, the longtime Shelton mayor; Prasad Srinivasan, a state representative from Glastonbury; Steve Obsitnik, a Westport businessman; Toni Boucher, a state senator from Wilton; and Joe Visconti, a former West Hartford councilman.
Themis Klarides and Len Fasano, the GOP leaders of the state House and Senate, haven’t ruled out running. Neither has Fasano’s predecessor, Fairfield’s John McKinney.
‘Here’s an opportunity’
Connecticut’s Republican Party boss from 2011 to 2015, Jerry Labriola Jr., said it takes courage to propose wholesale changes the way Boughton has.
“It’s bold, and not many candidates are willing to take bold positions,” Labriola said.
Looking to be the heir apparent to Gov. Dannel P. Malloy, who is not running for re-election, several Democrats are raising money for presumptive bids for the state’s top office. They include state Comptroller Kevin Lembo, Bridgeport Mayor Joe Ganim, Middletown Mayor Dan Drew, former Consumer Protection Commissioner Jonathan Harris and former prosecutor Chris Mattei.
Lt. Gov. Nancy Wyman and state Sen. Ted Kennedy Jr. haven’t shut the door, either.
“Like many Republicans, Mark (Boughton) is doubling down on a trickle-down economic theory that’s never worked,” said Drew, head of the state’s Democratic mayors group. “If you ended the state income tax, particularly for the wealthiest people among us, then state deficits will explode even further and it will lead to the dissolution of many public services, including safety and education. It will hurt the economy in the long run.”
Lembo, the chief fiscal guardian of the state, declined to comment through a spokeswoman.
Should Boughton go from exploratory phase to a full-fledged candidate, he said, he will unveil a framework for eliminating the income tax and recalibrating state government.
“If you exist and live in the current status quo, you’re going to look at it and go, ‘where are we going to find $9 billion?’ ” Boughton said. “That’s part of the problem. The vision of the candidates in the field right now can’t see past the huge looming deficits to say, ‘Hey, wait here’s an opportunity.’ ”
But Boughton’s skeptics say that until the mayor fleshes out his proposal, it’s a leap of faith.
“Unless he’s got some other plan to magically raise money or eliminate the vast majority of the state spending, I don’t see how it could be viable,” said David Cadden, a professor emeritus in the School of Business at Quinnipiac University in Hamden. “It would put (the state) in bankruptcy.”
email@example.com; 203-625-4436; http://twitter.com/gettinviggy