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This Guy “Earned” $3.9 Billion in 2011 and Asks Connecticut Taxpayers for Money?

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ray dalioThe incompetent Gov. Dannel Malloy of Connecticut is providing taxpayer money, to the tune of $22 million, to keep Ray Dalio’s Bridgewater hedge fund headquartered in the state. This is the same Ray Dalio who was paid $3.9 billion in 2011 alone. Are you kidding me? This is what happens when the 2 and 20 gang teams up with politicians.

This is not just a Democrat problem. It was started by a Republican as the WSJ points out: “Mr. Malloy’s Republican predecessor Jodi Rell raised the top marginal tax rate to 6.5% from 5% on individuals earning more than $500,000, and Mr. Malloy raised it again to 6.99%. Hilariously, Ms. Rell said last month that she’s also moving her residence to Florida because of the ‘downward spiral’ in Connecticut that she helped to propel.”

You can’t make this stuff up. Get out of Connecticut while you can. The writing is on the wall. Its public pension is the third worst in the country and based on this latest move by Malloy, will result no doubt in higher taxes and fewer services.  “Connecticut has lost 105,000 residents to other states over the last five years while experiencing zero real economic growth. Last year it was one of seven states including Maine, Mississippi, Illinois, Vermont, New Mexico and West Virginia with population declines,” writes the WSJ.

Democrats in Hartford this spring attempted to close a $960 million deficit—equal to about 10% of the state general fund—by cutting 2,500 state government positions and creating supposed efficiencies. One result: Six legislative commissions studying the struggles of blacks, Latinos, Puerto Ricans, Asian-Pacific Americans, women, children and seniors were consolidated into two 63-member study groups.

Yet a $1.3 billion gap will blow open in 2018 because the legislature’s budget patches don’t resolve imbalances driven mainly by worker pay and pensions, which this year cost about $1.5 billion. Pensions are less than 50% funded, third worst after Illinois and Kentucky.

So here is the new-old progressive governing model: Raise taxes relentlessly in the name of soaking the 1% to pay off government unions. When that drives people out of the state, subsidize the 0.1% to salvage at least some jobs and revenue. Ray Dalio gets at least some of his money back. The middle class gets you know what.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.