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Gov. Malloy Responds to His 'F' Grade

Gov. Dannel P. Malloy was among five governors -- all Democrats -- given an 'F' by the Cato Institute, a libertarian think tank. 'They're an extension of the Republican Party,' Malloy countered.

Updated 10:13 a.m. Wednesday

At a campaign stop in Greenwich Tuesday night, Gov. Dannel P. Malloy dismissed criticism from a libertarian think tank that his leadership scores an "F," primarily because of the "orgy" of tax hikes he's imposed during his two years in office.

"They're an extension of the Republican Party," Malloy said of the Cato Institute which issued its rating earlier on Tuesday.

Malloy defended the $1.8 billion tax hike he was able to push through the Legislature saying it helped pay down the $3.6 billion deficit he inherited from his Republican predecessor M. Jodi Rell.

"They didn't point out that my predecessor, a Republican, didn't mind spending every dollar in the rainy day fund," Malloy said during a rally for Greenwich Democrat John Blankley who is seeking to unseat Republican state Rep. Livvy Floren (R-149). The rally, which drew a little more than 100 party faithful, was at Blankley's backcountry Greenwich home.

For Malloy's complete reaction, please view video.

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Our original report follows.

An "orgy" of tax hikes under Gov. Dannel P. Malloy's watch is the reason the first-term governor scored an "F" in a report by the Cato Institute, a libertarian think tank.

Gov. Chris Christie of New Jersey, who Malloy often exchanges barbs with through the media, received a B.

New England's leadership received mixed marks. Maine's Gov. Paul LePage, who hopes to phase out the state's income tax, was among four Republican governors who received an A. 

Vermont Gov. Peter Schumlin and Rhode Island Gov. Lincoln Chaffee both received a D. Massachusetts Gov. Deval Patrick scored a B. 

The Cato Institute wrote:

Dan Malloy of Connecticut signed into law a huge $1.8 billion tax increase, which increased the top individual income tax rate from 6.5 to 6.7 percent, the top corporate tax rate from 8.25 to 9.0 percent, and the sales tax rate from 6.0 to 6.35 percent. The governor also increased hotel taxes, luxury goods taxes, online sales taxes, alcohol taxes,  and the state death tax. After this tax hike orgy, Malloy had the gumption to claim that some small tax credits he approved were a "far reaching" and "rigorous initiative to grow jobs."

Connecticut's unemployment rate increased in the past two months and hit 9 percent in September. In the past, Malloy said the economic recovery has been difficult yet progress is being made, while also questioning the recent numbers.

"We haven't seen an increase in the initial number of people filing for unemployment benefits -- in July, average weekly filings were 4,802 and in August they were 4,779. In fact, claims are down from this time last year. And tax withholdings are up 3.6 percent after adjustment," Malloy said. "Those two trends are the opposite of what you would expect to see if the state was losing jobs at the rate suggested in this report."

The original publication date of this article has been changed for layout purposes.

Robert Chambers October 10, 2012 at 12:00 PM
Governor retroactive tax increase and what do we have to show for it? Nothing... This governor is running more business out of the state than at any time I can remember. What happens when all the jobs are gone Danny? Who will you be able to steal taxes from then?
CuriousOrange October 10, 2012 at 02:00 PM
Cato Institute is a right-wing, anti-tax imitation of a think tank. Surprisingly, the story did not cry about Gov. Malloy's success in attracting companies like Cigna. Cato's most interesting position berates government for subsidizing businesses. See Cato Handbook for Congress, "9. Corporate Welfare." http://www.cato.org/pubs/handbook/hb105-9.html
Jason Bagley (Editor) October 10, 2012 at 02:15 PM
This article has been updated to include a response from Malloy, who says the Cato Institute is "an extension of the Republican Party."
RMK October 10, 2012 at 02:39 PM
No surprise there - the Cato institute IS a rightwing tool. Next to the Heritage Foundation, Cato has the most funding from oil barons and polluters than any other *think tank* out there. Guess what kind of *thinking* (read: scheming) those guys do....
RMK October 10, 2012 at 02:42 PM
Seriously? Where are they going, Robert - to China? And with the tax incentive blessings that Rmoney claims to be unaware of, I'm sure. Then again, they probably fled to some "right-to-work" state where the employees work for near-slave wages without advocacy -- you know those states, the ones run by Republican governors that take more federal funds and aid than any other state in the country.
AllGoneaway October 10, 2012 at 04:26 PM
This state is broke because of the fabulous pensions & benefits that PUBLIC SERVICE UNIONS have extracted. They make more than any comparable private sector job. The tax rebates & abatements are the only method of drawing in "big" companies. It phony match when the job created pay 30-40K & the state gives away 100K per job created. After 35 years I laid off my last employee last September. My state sales tax contribution has dropped to 1/10 of what is was when Bush was the national leader. August 2012, 11 months after that last layoff, I got a bill from the state for an extra assessment to pay for unemployment comp. because the state has borrowed o much from the fed gov't. Now it's Oct & I'm off the hook for further UC-2 tax bills. As soon as we can sell our house, we are moving to a tax friendly right to work state. Note: all the Japanese, German, Korean car manufacturers are in right to work states & their workers are making 30-50K with no skills required - i.e. welders, electrical engineering, programming, etc - but of course they still don't beat the pay, benefits & pensions of the fellows moving the grass on Merrit Pky in air conditioned John Deer tractors.
RMK October 10, 2012 at 05:20 PM
Negotiation is needed among union contracts, not jealous outrage from the private sector losing their retirement due to corporate greed. You do realize that those pensions lost a great deal of their saved value when those funds were invested by town leaders in Wall Street banker's greed that brought our economy to its knees. But go ahead, blame the guy who cleaned your garbage off the sidewalk, taught your kids and grandkids how to read and answered your emergency calls for help.
Walt October 10, 2012 at 06:03 PM
RMK, you are so delusional in your thinking. You DO realize that no matter what happened to the pension money invested, the money will be guaranteed to be paid out in full by the state and towns. You push all the usual lib buttons, "corporate greed", Wall Street bankers", "right wing". Exactly who do you think is supposed to pay the confiscatory taxes in CT so that the $100,000.00+ pensions can be paid out to fire men and grass cutters? Who is going to be dumb enough to stick around while these unions fleece the state?
RMK October 10, 2012 at 06:16 PM
Well, Walt, that is the contract the town made with it's personnel - the fact that the TOWN made crummy investments in the stock market during a run of deregulation for the bankers on Wall Street is not the fault of those workers who entrusted the town leaders to do the RIGHT THING with their retirement. Again, you blame the worker while completely absolving the leadership - why is that? Why do most middle class and lower class Republican voters (making an assumption here based on your on-going tea party delusions) blame the little guy while bowing at the feet of the corporate overlords, like good little serfs? Unbelievable.
CuriousOrange October 10, 2012 at 07:19 PM
I have to wonder who sold the town bad investments.
Walt October 10, 2012 at 08:26 PM
So the STATE is to blame for the giveaway of taxpayer funded pension dollars to the GREEDY workers! The STATE made the deal with the workers. The STATE doesn't oversee or regulate the amount of overtime worked which baloons the pension payouts, and what does it matter, it's only the stupid taxpayers who will pay it anyway! It's monopoloy money! Well, you can label Cato whatever you want to try to vilify them but the facts are that taxes went up 1.8 BILLION DOLLARS. Income tax went up. Sales tax went up. Taxes on every stinkin' thing went up to pay for the GREED of the state workers. You'll always be the good little serf living off the scraps of what your democratic heroes toss over the wall of the castle to you while they live it up on the taxes of others.
Chaper11 October 10, 2012 at 11:42 PM
In the town of Stratford since 2006 - half the retirees maker more in retirement than they did on the job. Do the math. The politicians granted the lucrative pay, benefit & pension benefits to the public service unions and the public service unions fund the politicians campaigns lavishly. Is it a 100 million in donations from the NEA? Think AFSME, SEIU, ACORN. Only a blind state union worker can't see the connection. That's why they fear right to work states. Richard Trumka more visits to the White House than anyone else. No connection there either. Just a coincidence. He must have gone to the wrong building. R.I. big cities on the verge of bankruptcy. Must be just a coincidence. The US govt 16 trillion in debt. Big Bird CEO making 685K a year. Gasoline $4+ a gallon. Just keep raising taxes is their ONE AND ONLY SOLUTION. Not only are their budgets bankrupt, their ideas are banrkupt.
Chaper11 October 10, 2012 at 11:50 PM
None of the massive union contracts are ever published anywhere before they are granted to the unions. The recent Chicago Teachers Union strike was ended when the teachers voted on the contract. Have you ever heard of the towns taxpayers voting on the contracts? Never. The politicians are the ones. Them and the 47% sitting on their hands. It was a disgrace when CT state workers showed up in droves for the free D-SNAP funds. And what did the governor do about it? Fire a token few. Taxpayer Parasites.
Chaper11 October 10, 2012 at 11:53 PM
Privatize garbage collection. Privatize most all government function. Look at AMTRACK - their cost for service/mile is something like 10X private carriers.
RMK October 11, 2012 at 12:51 AM
Yes, yes. Blame the workers, Walt. It's what the Koch Bros and Republicans want you to. The guy making 80K a year to rescue you from your burning home is your enemy. Gotcha.
RMK October 11, 2012 at 12:55 AM
Their pensions are NOTHING compared to the OT the fire department has because of short-staffing. Take another look at what the town attorneys and open cases cost the town and maybe the little guy hauling your garbage and the school teacher might not seem like your enemy anymore. The focus of the public ire is ON THE WRONG THING. Get a clue, Strafordites. Your enemy isn't the public worker on a pension. Once again, you've been easily tugged by your noses to believe the pensioners are the bad guys when the BIG DOLLAR payouts are going elsewhere.
Walt October 11, 2012 at 01:04 PM
Hey RMK, you finally brought up the Koch Bros to add to the lib buzzwords! Funny though, not one mention of the taxes that the state has raised (the subject of the piece) but I guess that ever increasing confiscatory taxes are a good thing so long as they go to the proletariat.
CuriousOrange October 11, 2012 at 01:16 PM
Is it any accident that the "right to work" states match the Confederacy -- defeated in 1865 in their defense of slavery -- plus some western and Midwestern states that joined the United States later? In other words, "right to work" really means the right of employers to pay less, provide fewer benefits, abuse working conditions and generally keep workers from organizing in the free market.
CuriousOrange October 11, 2012 at 01:19 PM
Great! You want Tony Soprano & co. to collect our garbage.
ExTeecher October 11, 2012 at 04:21 PM
Your analogy is terrific. Is there any accident that highly paid, benefited & pensioned public service unions workers cannot be fired even when inept, incompetent, have seizure (think Stratford cop), steal from public works (think the same Stratford cop), get caught with drugs (think the same Stratford cop), stay on disability for a year, get caught on film fighting fires in Shelton (think of a Stratford fireman), for a year use a stolen Lexus from Fairfield, recovered in Stratford - as your personal vehicle (think a Stratford lieutenant) & then "quietly" retire or steal TV's, computers, floor polishers from schools & then retire. They are wonderful. We need more. PS PSUnions means you cant fire thieves, druggies, teachers dating students, malingerers, cheats - NO ?
ExTeecher October 11, 2012 at 04:26 PM
REPLY to CuriousOrange: 9:19 am on Thursday, October 11, 2012 Great! You want Tony Soprano & co. to collect our garbage. You watching too much TV instead of working. Are you now? Read the statistics on government workers surfing all day at work. It's a good thing there is no WiFi on the the garbage trucks - yet.
Rose B October 12, 2012 at 03:45 AM
ExTeecher. Highly doubt you have ANY experience as a teacher, and hoping that you weren't for the kid's sake. Your ignorance regarding unionized workers is mindboggling, but that's what happens when you spend your days in a FoxNews/Rush Limbaugh bubble.
Bob Cerani November 19, 2012 at 12:27 AM
Walt, You have to understand where this rmk character is coming from (I won't even put his name in caps) He's not worth it. He's an ill informed talking point dem. He thinks because the dems have one party rule in connecticut that he is an authority on everything. I'll give the dems a couple of years and they will force themselves out of office. What goes around comes around. Idiot.
Bob Cerani November 19, 2012 at 12:31 AM
Is that all you have Rose B? If Gov Malloy had any guts he would get rid of the waste in the state unions. I guess You Rose, Curious Orange and rmk are part of the problem.

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