Finch: Tax Story Bunch Of Bull

Responding to a story published by OIB and other news outlets about Bridgeport having the highest collective tax rate in the country, Mayor Bill Finch writes the survey conducted by a Washington DC organization is full of it. “It’s my hope that USA Today, “24/7 Wall Street” and “Only in Bridgeport” and other media outlets, will still stop using this misleading information, as attractive or sensational as it may be, to further its own goals at the expense of the cities it misrepresents.” Finch commentary follows:

Once again, media outlets have latched on to a study prepared by a staffer who works for the District of Columbia to show how Washington, D.C.’s effective tax rate measures up favorably against other cities. Very little has changed in this year’s version of the study from last year’s study so I will reiterate many of the same facts from a statement I released last year when a prominent national tax preparation company ran a blog post regarding this very same study.

Much has been made of the USA Today trend story targeting the “10 Most Taxed Cities in America.” It’s the unfortunate fact of the digital world we live in that these “misleading” trend stories catch the eye of the reader and the pundit without any proper research or follow-up.

Simply put, the USA Today story which was a reprint from a post on financial news blog “24/7 Wall Street,” and which was picked up by “Only in Bridgeport,” is misleading and inaccurate in its portrayal of Bridgeport as the most highly taxed city in the United States.

I don’t dispute that our residents pay a lot of taxes–the state of Connecticut bases its revenues on an overreliance on property taxes, making it one of the more highly taxed states in the U.S. For cities like Bridgeport, which is one of the smallest municipalities in the country and the hub of nonprofit services such as hospitals, colleges, courts and jails, it means that we depend on state reimbursements to make up for lost revenues.

That said, to list Bridgeport as the most highly taxed city in the United States is simply misleading. Additionally, this study relies on flawed information:

The study is using Fairfield County home values, which includes some of the wealthiest towns in the country for their data on Bridgeport home values. The article in USA Today notes “the metro area, which includes affluent Fairfield County, is wealthier than much of the U.S. and was used to calculate home values and property burdens by the Office of Revenue Analysis. More than 20% of households had an annual income of at least $200,000, more than any other metro area reviewed.”

USA Today’s False Claims: This study is based on a hypothetical family of three making $50,000 owning a home valued at $252,627, a family of three making $75,000 owning a home valued at $378,941, a family of three making $100,000 owning a home valued at $505,254 and a family of three making $150,000 owning a home valued at $757,881.

Fact: This study rests on an income-to-home values that one would be hard-pressed to find in the city of Bridgeport. Median income of a Bridgeport resident is $38,000. The average home is valued at $150,500.

USA Today’s False Claims: Average Bridgeport homeowner’s tax bill is $16,333

Fact: Average Bridgeport homeowner’s tax bill is $6,430

This study takes into account more than property and motor vehicle taxes. It also includes gasoline, sales taxes, motor vehicle registration fees and state income tax–items over which the City has no direct control.

USA Today is not even close to accurate in any of its research or assumptions. Bridgeport is not even the most taxed city in our state. Hartford, Waterbury, Naugatuck, New Britain, East Hartford, and Manchester all have higher mil rates than Bridgeport. According to the Connecticut Economic Resource Center (CERC), Bridgeport’s per-capita tax is 24 percent less than the state average.

In 2013, “24/7 Wall Street,” the same publication that ran this inaccurate trend story also ran a story claiming that Bridgeport was ranked the third richest city in the nation–a claim we know to be untrue.

Our residents are of modest means and work hard to afford what they have here in the city of Bridgeport. During my tenure, we have worked very diligently to reduce our expenditures and control all the costs we are able to, especially during this very challenging budget cycle.

We have made great progress in the city during the past five years–restoring credibility and financial stability to city government and expanding economic development.

Rather than focusing on the flawed national “trend” stories that are misleading in order to gain attention, I urge my fellow residents to unite in contacting their state legislators to demand they find a better way to cut the state’s budget, not add another more unrealistic burden to our taxpayers. It’s my hope that USA Today, “24/7 Wall Street” and “Only in Bridgeport” and other media outlets, will still stop using this misleading information, as attractive or sensational as it may be, to further its own goals at the expense of the cities it misrepresents.

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7 comments

  1. When the story was first run on this site, I said this exact thing, Finch would downplay it all. I’m happy he mentions this website, hopefully he sees what the people feel about his administration. We are people who WANT Bridgeport to succeed, but facts don’t lie and a political scene the rest of Fairfield county runs from (eg: BPT left out of recently formed regional council) is the reason BPT is still a joke after years of “Progress.” One day I will see a beautiful city again …

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  2. My current tax bill is based on “flawed” information, but because the city pushed for putting off the reval for two years, my tax bill will be “flawed” for the next two years. The only reason our mil rate is not the highest in the state is because of this. What is flawed is the fiscal policy of the Mayor and his rubber stamp cronies on the council.

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  3. *** What personal reasons would these news outlets have for lying or providing false info about Bpt and its high taxes, I wonder? Maybe the truth hurts, especially if you’re thinking of running for Mayor again in the near future! After all, a crafty politician will always try to add color to a Black & White painting to brighten it up, no? High taxes that yield “ZERO” in the Park-City! *** WHAT’S LEFT IN YOUR WALLETS? ***

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  4. Yes, and the earth is still flat, and the sun orbits the earth.

    Okay Finch, then what are we? Number two? Three? Or how about nine? Does that make you happy? The reality is we are somewhere in the top 10 no matter how you spin it.

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  5. Yeah okay, BptPorter. Let’s say Bill is right. And we are whatever number–take your pick–we are all drowning in taxes and this is an administration that has failed in every way to alleviate the issue. Spends, taxes, no economic development.
    And by the way, don’t try to deflect the attention away from the major defeat last night. Your solar panels won’t toast anything in Bridgeport.

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  6. Finch’s review of the once-again #1 ranking continues his superficial and basically dishonest writing of his “leadership” track record.

    “We have made great progress in the city during the past five years–restoring credibility and financial stability to city government and expanding economic development.”

    Restoring credibility? Personally I found the Fabrizi regime had more credibility than Finch and his officials do today, so why Finch uses the word restoration I do not understand. Restoring credibility is what Finch’s replacement will be tasked with certainly.

    Financial stability is not an achievement of this administration either. They have used the sleight-of-hand fiscal maneuvers handed down to them as well as reduced the City fund balance and failed to curtail public safety budget deficits that have used up taxpayer funds unnecessarily. He has reduced some checks and balance mechanisms that were available to aid stability and has reduced the amount and form of information to the Council by regularly violating one or more parts of the City Charter.

    If real economic development were in process, we would be seeing more positive posting of Net Taxable Grand List values. NOT. And we might have expected the revaluation to go on as State mandated. But that also appears NOT. And new projects in Bridgeport would be trumpeted with positive financial details (including real ongoing jobs) rather than seeing PILOT payments, tax payments going to bonding commitments, Voluntary in lieu of tax payments, etc. as revenue sources.

    Bill has posted a picture of himself with Vice President Biden recently. The text accompanying this picture indicates people in the City receive $42 Million of Earned Income Tax Credits!!! That means those folks filed a 1040 IRS form and qualified for a personal revenue flow. Bill Finch had nothing to do with that revenue I suggest, and it is the height of how out of touch he is with financial reality and truth about money relative to the #1 article that stated it did not reference Federal Taxes (with income taxes being the largest share of Fed claims on Bridgeport taxpayers).

    How many people in Bridgeport really believe the City under Finch has made great progress? Voter pushback regarding Library referendum, Charter question, and rejection of many incumbents in 2013 elections is clear. Today, reaction to handling of Sikorsky Airport funding of “driveway,” labor agreements creating incentives for public safety employees to book overtime to get bigger pension payouts without public notice, and the Solar at Seaside current episode will fuel further pushback. Time will tell.

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