Conservatives say the state has a tax problem. Liberals say it has an inequality problem. What it really has is a city problem.
The state of Connecticut has many nicknames. It is the Nutmeg State, the Constitution State, and America’s Country Club, while Hartford, its capital city, has been called the Nation’s Filing Cabinet. But as Connecticut grapples with a deep fiscal crisis, it might as well embrace another moniker: The Rorschach State. For the left and the right, it is the manifestation of each side’s greatest fears.
Despite being the richest state in the country, by per-capita income, Connecticut’s budget is a mess. Its pensions are woefully under-funded. Its deficit is projected to surpass $2 billion, or 12 percent of its total annual tax revenue. Hartford is approaching bankruptcy. Conservatives look at Connecticut and see a liberal dystopia, where high taxes have ruined the economy. Liberals, on the other hand, see a capitalist horror show, where the rich dwell in gilded mansions, ensconced in sylvan culs-de-sac, while nearby towns face rising poverty and bankruptcy. Why is America’s richest state floundering?