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Wednesday, March 15, 2017

Blocked by a State’s Wall of Taxes

Connecticut wants a monopoly on its citizens.

The state of Connecticut has a budget shortfall, and the legislature has thought of a brilliant way to solve it: they are going to steal the money out of citizens’ state retirement accounts.

The legislature’s plan is to look at the retirement accounts of previous Connecticut government employees who have moved out of the state and take 30% of those savings. There is doubt over whether the state can proceed with this plan – which has been dubbed a “fee” rather than a “tax” since taxing a retirement account is illegal – but the fact remains that Connecticut wants to financially punish those of its employees to have the tenacity to look at the market of states and choose to live somewhere other than Connecticut.

In essence, Connecticut wants a monopoly on its citizens. Unfortunately, it is not the only state, nor will it be if the courts allow this fee to move forward.

Watch the video below, or check out the podcast here on SoundCloud.

  • Dr. Antony Davies is an Associate professor of Economics at Duquesne University, and co-host of the podcast, Words & Numbers.

  • James R. Harrigan is a Senior Editor at the American Institute for Economic Research. He is also co-host of the Words & Numbers podcast.