Wallingford Man Testifies Before Legislative Committee

Wallingford's Anson Smith offered this testimony before the legislative Finance, Revenue and Bonding Committee Monday, March 15.

Senate Bill 821: AN ACT CONCERNING THE REFORMATION OF CERTAIN TAXES AND TAX EQUITY - Support

House Bill: 6187: AN ACT CONCERNING THE RESTRUCTURING OF CERTAIN TAXES AND TAX EQUITY - Support

Senator Fonfara, Representative Scanlon, Senator Martin, Representative Cheeseman, and members of the Finance, Revenue and Bonding Committee:

My name is Anson Smith and I live in Wallingford. I appear here today as a member of CSEA SEIU Local 2001. I am testifying in strong support of House Bill 6187 and Senate Bill 821.

This year has been brutal for Connecticut residents.

• The unemployment rate tops 8%;
• Some 15,000 families are in danger of eviction;
• 1 in 5 adults in Connecticut report that their children don’t have enough food to eat;
• Before the pandemic hit, more than 200,000 people were without health insurance; and
• 57,000 households with children lack reliable internet access or electronic devices.

This … in the state that was ranked the sixth wealthiest in a March 11 article in US News & World Report. Yes, Connecticut is a leader in median household income. But it is also a leader in income inequality.

Some have fared very well during the pandemic: billionaires … who added $3.6 billion to their wealth. They have fared well with taxes, with an effective tax rate that’s far less than ours.

F. Scott Fitzgerald once observed, “The Very Rich: They’re different…. Their lavish lifestyles do something to them. It makes them soft when we are hard, and cynical when we are trustful.” One other thing Fitzgerald overlooked: They don’t like to pay taxes. It was true during the early Republic and it’s true today. From the ‘50s through the ‘70s, CEOs tried to balance the interests of all stakeholders: owners, investors, officers, suppliers, customers and workers. Then, the captains of industry were seduced by the Goddess of Greed. The focus on “we” became the focus on “me.” Taxes were for the lower classes. The Rich are different.

In 1991, Connecticut responded to this difference with a 4.5 percent income tax. The 13.8 percent corporate tax was lowered to 10.5 percent. The dividends and interest tax, which peaked at 14 percent, was eliminated, as was the 7 percent capital gains tax.

Today, the Rich zealously guard their tax advantage. Their media and legislative allies watch their backs while a spin mill cranks out far-fetched arguments to con the public into backing them. Today, the less fortunate pick up the slack, juggling limited finances to meet their tax bill. These people, who can’t afford it, shoulder the tax burden, because those who can afford it …are different.

With House Bill 6187 and Senate Bill 821, we have an unprecedented opportunity to restore fairness to our tax code. I urge you to make the right choice and pass these two bills.

Thank you.

Anson Smith, a member of CSEA SEIU Local 2001, is communications committee chair of the Democratic Town Committee, and communications director of the Greater New Haven Labor History Association, a group of labor supporters committed to labor academics and activism.