Letter to the Editor 3-17-16

Solving the state’s runaway budget problem

 

It is nice to be able to agree with Zachary Janowski that the “Malloy budget fixes at least one old problem” (The Lakeville Journal, Feb. 25). Governor Malloy’s plan rightly merges state agency responsibility for employee payroll with responsibility for health care and pension benefits. (Yes, the price of gas is part of the cost of driving a car.)

We probably shouldn’t describe workers’ health care and retirement plans as “fringe” benefits. The word “fringe” implies something that is of secondary importance or ornamental in nature. The combination of salaries, health care and pensions is what we pay to hire “the best and the brightest.” Whether further overtime work and pay is justified is another question.

A successful, responsible agency like the World Health Organization treats staff salaries and benefits together, and keeps these costs under constant current and forward-looking actuarial review. “It’s what we do.” Connecticut needs to do exactly the same. So, what’s the big problem?

The problem with “Obamacare,” Medicare and Medicaid in this country is that obstructionists in Congress have consistently refused to regulate costs, prices, premiums and co-pays. Pharmaceutical companies and care providers are “free” to charge outlandish, inconsistent, unjustified prices for drugs and services. State and household budgets have to pay the price.

The same obstructionists have refused to address the overriding problem of “tax avoidance” (or, rather, “tax evasion”) via so-called loopholes, which, more than tax brackets, constitute the real underlying source of national and state budget deficits.

So, yes, Governor Malloy’s plan fixes one problem, but how about fixing the overriding problem: failure to pay (or collect) fair, equitable state and federal taxes? Tax reform is the real key to solving the budget crisis.

Tony Piel  

Sharon

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