Federation of Connecticut Taxpayer Organizations

From:� The Federation of Connecticut Taxpayer Organizations
Contact:� Susan Kniep, President
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032

TAX TALK AUGUST 30, 2009

THE TOP 10 HIGHEST PAID CEOs

Ten CEOs take home more than $70 million in 2008, with Blackstone's Stephen Schwarzman topping the list with more than $700 million in compensation.

http://money.cnn.com/2009/08/14/news/companies/highest_paid_ceos/index.htm

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Insurers Poised To Gain From From Health Care Reform, Aug 30, 2009, Hartford Courant by Ken Gosselin:� Aetna President Mark Bertolini traveled around the country this year lobbying governors and insurance regulators in all 50 states for the industry's vision of health care reform.� Continued at �. http://www.courant.com/business/hc-hc-insurers.artaug30,0,5054558.story

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Judge holds that Conn.'s campaign financing is unconstitutional

But supporters see options in 14 months until next election, By Alex Wood and Keith M. Phaneuf , Journal Inquirer, August 28, 2009� A federal judge ruled Thursday that Connecticut�s public financing scheme for candidates seeking state offices is unconstitutional because it discriminates against minor parties.� The judge, Stefan R. Underhill, who sits in U.S. District Court in Bridgeport, issued a permanent injunction blocking further implementation of the public financing scheme.� But an official of Common Cause of Connecticut, which supports public financing, said it expects Attorney General Richard Blumenthal to seek a stay of the ruling from the 2nd U.S. Circuit Court of Appeals in New York.� Continued at �. http://ctact.org/default.asp?callcontent=yes&filename=Rell%20budget%20soft.htm%20%20%20&location=State_-_Budget&buttonname=State%20-%20Budget

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The following is also contained in today�s Tax Talk:�

� Obama's Bay State Problem, Massachusetts� ethics problems reflect poorly on Obama.

� Governor Rell Offers Compromise Budget Alternative

� Budget Alternative Summary Sheet

� State Spending Sheet

� State Debt $18 Billion and Climbing

� Rell�s tax plan lobs a softer hit to wealthy than expected

� Why the deficit will raise taxes�

� What the State Giveth to Some Towns, It Taketh from Others�

� Hartford Tea Party

� OOPS! CHARLIE FORGOT THIS $1M HOUSE

� Care & Feeding of Connecticut's Congressmen

� Rhode Island will shut down its state government for 12 days and trim millions of dollars in funding for local governments�

� 10 Cities Facing the Next Real Estate Bust Include Hartford and New Haven

� Chicago Shuts Down to Save Money

� Formerly-'Gagged' FBI Whistleblower Details Congressional Blackmail, Bribery, Espionage, Corruption in Remarkable Videotaped Deposition

� Real Choice? It�s Off Limits in Health Bills - Both parties are protecting the insurers.�

� Estimate for 10-Year Deficit Raised to $9 Trillion

From Barrons: By Jim McTague, Aug 31, 2009

Obama's Bay State Problem, Massachusetts� ethics problems reflect poorly on Obama. �. FEW OF US PAY MUCH ATTENTION TO THE OVER-THE-TOP shenanigans of Massachusetts Gov. Deval Patrick, a close friend of President Barack Obama, or to those of the Massachusetts State Legislature. But the collective disinterest will end after Labor Day when the legislature's overwhelming Democratic majority, responding to Patrick's urging, picks a temporary replacement for Sen. Ted Kennedy to help Obama ram his ambitious agenda through Congress. Beacon Hill is a hotbed of delicious scandal. The national press will home in on the tawdry operation, presenting Democrats in Washington with a Category Five public-relations problem. The president, the Senate and Massachusetts political corruption all will be bound up in one sound bite. Journalists will remind us of the fiasco that ensued when Illinois Democrats hastily appointed Roland Burris to fill Obama's U.S. Senate seat. Burris faces a Senate ethics investigation for failing to disclose information about his relationship with former Illinois Gov. Rod Blagojevich, who was indicted on federal corruption charges. This sort of publicity likely will harm Obama's already wobbly popularity numbers. Massachusetts is neck-and-neck with New Jersey in the political-corruption derby. Democratic House Speaker Salvatore DiMasi was indicted for alleged influence peddling in January and resigned. He is the third consecutive House speaker to be indicted. State Sen. Dianne Wilkerson was busted last October after investigators allegedly watched her stuff bribe money into her brassiere -- providing the only real evidence of inflation in two years. Gov. Patrick is under fire for appointing political cronies to high-paying posts despite a campaign pledge to end "politics as usual." If that phrase sounds familiar, it's because Obama's campaign advisor David Axelrod also advised Patrick's gubernatorial campaign.� Continued at �. http://online.barrons.com/article/SB125149805378968141.html

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Governor Rell Offers Compromise Budget Alternative

Latest Budget Plan Would End Budget Stalemate;

Governor Calls on Legislature to Approve Budget by September 1

Budget Alternative Summary Sheet

State Spending Sheet

Governor Rell�s Remarks are continued at the following web link: http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=445710

Rell�s tax plan lobs a softer hit to wealthy than expected

She would increase income taxes, but give a break on the estate tax for properties worth more than $2 million By Keith M. Phaneuf, Journal Inquirer,� August 28, 2009

HARTFORD � Connecticut�s wealthiest residents could end up contributing much less in taxes than expected under Gov. M. Jodi Rell�s budget proposal, if legislative analysts are correct. That�s because the nonpartisan Office of Fiscal Analysis reported Thursday that the administration overestimated by $371 million how much revenue her newest tax plan would raise.� Continued at �.

http://ctact.org/default.asp?callcontent=yes&filename=Rell%20budget%20soft.htm%20%20%20&location=State_-_Budget&buttonname=State%20-%20Budget

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STATE DEBT $18 BILLION AND CLIMBING�.

The following are questions recently presented to the State�s Office of Policy and Management by Bob Young of FCTO along with OPM�s response:

1.) My question is how much borrowing does both proposed budgets anticipate?

A: Both the Governor�s Revised Budget for the 2009-11 biennium, released on July 30, 2009, and the General Assembly�s budget plan released the same day anticipates the borrowing of approximately $2.0 billion to cover operating expenditures.

2.) How much debt does the State of Connecticut currently owe (bonding, short term borrowing, etc.)?

A: Currently, the state has approximately $18.0 billion in all debt outstanding.

3.) How much is the gross portfolio amount the State Treasurer has invested?

A: $20 billion, all funds

4.) With the current State Employee pension contributions and the return on investments (from the portfolio) does the Treasurer realize the necessary funds to satisfy the outgoing payments to the retirees? Is there any shortfall and if so how is the shortfall satisfied?

A: This there is a shortfall, and it will be satisfied by sweeping a portion of the dividends and interest earned on the portfolio.

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Why the deficit will raise taxes - The nation's debt must be brought to heel, and doing so will require tough choices beyond spending cuts, experts say.� By Jeanne Sahadi, CNNMoney.com senior writer� August 27, 2009 (CNNMoney.com) -- A $9 trillion federal deficit over 10 years may be too hard to comprehend. But this part is easy: Such unwieldy amounts of debt could have an impact on Americans' bottom line one way or the other -- if not tomorrow, then the day after. http://money.cnn.com/2009/08/27/news/economy/deficit_taxes/index.htm?postversion=2009082713

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WHAT THE STATE GIVETH TO SOME TOWNS,

IT TAKETH AWAY FROM OTHERS!

WAS YOUR TOWN ON THE RECEIVING END OF STATE GRANTS?� OR DID TAXPAYERS IN YOUR TOWN SEND MORE MONEY TO THE STATE THAN WHAT YOUR TOWN RECEIVED IN RETURN? �.� Bob Young, Treasurer of the Federation of Connecticut Taxpayer Organizations, researched this issue from information he received from the State of Connecticut.�� Through his study he determined that many towns are sending much more money in taxes to the State than what they are receiving in return from state grants and other state funding vehicles.� We invite you to review the following to determine where your town stands.� Note that the column captioned Difference contains numbers highlighted in red.� The numbers designated in Red reflect which towns received more money from the State than what town taxpayers paid in taxes to the State in fiscal year 2007 � 2008. ��Click to see where your town stands�.

http://ctact.org/default.asp?callcontent=yes&filename=WHAT%20THE%20STATE%20GIVETH.htm%20%20%20&location=State_-_Budget&buttonname=State%20-%20Budget

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For News from the Hartford Tea Party

http://www.thehartfordteapartypatriots.com/

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New York Post Article By Charles Hurt,� Bureau Chief, Aug 28, 09

OOPS! CHARLIE FORGOT THIS $1M HOUSE, REALTY BITES TAX-THEM-NOT-ME RANGEL WASHINGTON -- Rep. Charles Rangel failed to report as much as $1.3 million in outside income -- including up to $1 million for a Harlem building sale -- on financial-disclosure forms he filed between 2002 and 2006, according to newly amended records.� The documents also show the embattled chairman of the Ways and Means Committee -- who is being probed by the House Ethics Committee -- failed to reveal a staggering $3 million in various business transactions over the same period. http://www.nypost.com/seven/08282009/news/regionalnews/oops__charlie_forgot_this_1m_house_186849.htm

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Care & Feeding of Connecticut's Congressmen

An excellent report by the Yankee Institute http://www.yankeeinstitute.org/2009/08/the-care-and-feeding-of-our-congressmen/

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PROVIDENCE, R.I. � Rhode Island will shut down its state government for 12 days and trim millions of dollars in funding for local governments under a plan Gov. Don Carcieri proposed Monday to balance a budget hammered by surging unemployment and plummeting tax revenue.

The shutdown would force 81 percent of the roughly 13,550-member state work force, excluding its college system, to stay home a dozen days without pay before the start of the new fiscal year in July.� The closures come as the worst recession in decades has eliminated hundreds of millions of dollars in tax collections and pushed unemployment to 12.7 percent, the second-highest jobless rate in the nation behind Michigan.

�http://news.yahoo.com/s/ap/20090824/ap_on_re_us/us_ri_government_shutdown

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By U.S.News &World Report:

10 Cities Facing the Next Real Estate Bust Include Hartford and New Haven�.. August 11, 2009 10:00 AM ET | Rick Newman | Permanent Link | Print

The worst of the housing bust might finally be over, but another real estate tsunami is about to swamp many American cities. This time, it will be office buildings and retail space going vacant and facing foreclosure.

Hartford, Conn. (20.2 percent, up 6 points). A recent survey identified Hartford as one of the first cities to bounce back from the recession, but local economists are doubtful. Many of the city's insurance firms have slashed jobs in response to the financial meltdown. Aircraft-engine maker Pratt & Whitney may close two local plants, and the Obama administration's push to end production of the F-22 fighter jet would hurt defense contractors in the area. With little new construction over the past year, most of the increase in vacancies is coming from businesses scaling back or shuttering their operations completely.

New Haven, Conn. (17.2 percent, up 5.8 points). Education and healthcare have helped stabilize New Haven's economy, but even Yale University has scaled back development plans and laid off workers, after its famed endowment dropped by $6 billion because of stock market losses. And a long-term shift away from manufacturing toward financial services and other white-collar industries has left the city exposed to the financial meltdown. That means New Haven's recovery will probably lag the nation's.

http://www.usnews.com/blogs/flowchart/2009/08/11/10-cities-facing-the-next-real-estate-bust.html

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Chicago Shuts Down to Save Money , BBC News: "Public services in the US city of Chicago have been shut down for a day as the authorities face an expected budget shortfall of some $300m ... Non-essential services such as rubbish collections, libraries and health centres were closed, in the first of three planned reduced service days." http://www.truthout.org/081809G?n

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From the Huffington Post: Formerly-'Gagged' FBI Whistleblower Details Congressional Blackmail, Bribery, Espionage, Corruption in Remarkable Videotaped Deposition

Sibel Edmonds' full under-oath testimony transcript from Ohio election case, details explosive allegations against key members of Congress and other high-ranking State and Defense Department officials... http://www.huffingtonpost.com/brad-friedman/formerly-gagged-fbi-whist_b_269787.html

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NY Times:� Real Choice? It�s Off Limits in Health Bills - Both parties are protecting the insurers.� On one hand, big interest groups are lobbying hard to keep some form of the status quo. Insurers don�t want people to have more choice. Neither do employers and labor unions, which now control huge piles of money spent on health care. Nor do hospitals and drug makers, which benefit from all the waste now in the system.�� On the other hand, the people who stand to benefit most from having more choice � all of us � are not agitating for change, because the costs of the system are hidden from us. A typical household spends $15,000 each year on health care. But most of it comes in the form of taxes or employer deductions from paychecks, which means insurance can seem practically free. Continued at �. http://www.nytimes.com/2009/08/26/business/economy/26leonhardt.html?em

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From the New York Times, August 25 Edition -

Estimate for 10-Year Deficit Raised to $9 Trillion, WASHINGTON� The nation�s fiscal outlook is even bleaker than the government forecast earlier this year because the recession turned out to be deeper than widely expected, the budget offices of the White House and Congress agreed in separate updates on Tuesday. The Obama administration�s Office of Management and Budget raised its 10-year tally of deficits expected through 2019 to $9.05 trillion, nearly $2 trillion more than it projected in February. That would represent 5.1 percent of the economy�s estimated gross domestic product for the decade, a higher level than is generally considered healthy.� Continued at �. http://www.nytimes.com/2009/08/26/business/economy/26deficit.html?_r=1&bl&ex=1251432000&en=7d1bba04578a733a&ei=5087%0A

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