July 12, 2024

Cash Starved Consumers Stop Betting

People are no longer willing to wager their last dollar on the hope of striking it rich.   The AP is reporting that Connecticut casinos reported almost a 10% decline in revenue for January 2009.

UNCASVILLE – Slot winnings at Connecticut’s two Indian casinos were down in January from a year ago, continuing to slide with the economy.

The winning at the Mohegan Sun declined 8.7 percent compared to January 2008, the casino’s poorest year-over-year performance since October.

The Mohegan Tribal Gaming Authority, which manages the casino, said slot revenues totaled $62.4 million. The tribe sent $15.6 million to the state under Connecticut’s gaming compact.

Foxwoods Resort Casino and MGM Grand at Foxwoods reported January slot winnings of $52.9 million, 7.3 percent less than Foxwoods reported the previous January. But the performance was better than in December 2008, when Foxwoods’ slots win was off 19.3 percent.

Some months ago Connecticut’s two major casinos also instituted job cuts and wage freezes.  You know things are bad when the casinos show huge drops in business.

The big question – are consumers suddenly very cash poor or are they being sensibly frugal?  Consumers know what they must do and are acting accordingly.  The State of Connecticut has yet to recognize reality and needs to take a lesson from its citizens.

You Cannot Multiple Wealth By Dividing It

Tax Foundation – Connecticut 3rd Highest Tax Burden in Nation

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Connecticut taxpayers had to work until May 8 (the latest in the nation) to pay their total tax bill, 15 days later than the national Tax Freedom Day (April 23).

Connecticut’s State/Local Tax Burden Third-Highest in Nation
Connecticut, currently ranked 3rd highest, has risen 21 places over the last three decades and now holds a place among the nation’s highest-tax states.

Connecticut’s 2008 Business Tax Climate Ranks 38th
Connecticut ranks 38th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property.

Connecticut Levies Sales Tax above National Median; Gasoline and Cigarette Taxes among Nation’s Highest

Connecticut Residents Are Voting With Their Feet

The Connecticut State Data Center says figures from last year show the population growth in the state is very small.

The University of Connecticut-based center says Connecticut’s population grew by less than two-tenths of 1 percent last year.

There is a connection between high taxes, job losses and zero population growth.  Connecticut has become a very high cost state for both residents and employers.  If Connecticut really wants to increase jobs in the state,  attention should be focused on lowering taxes.

“A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned – this is the sum of good government.” Thomas Jefferson