State Governor Candidates have different Tax Relief Strategies

There's pertinent tax discussion at the state level in today's New Haven Register, in the article entitled "DeStefano promises tax breaks". In the article, there are strategies from both the sitting Governor Rell (R) and John DeStefano (D) (who is currently the mayor of New Haven, but who is running for Governor). I am not going to openly endorse either, but present the strategies here for discussion.

DeStefano:
Phase I ($455 million cost):

• property tax freeze to 2006 rates for seniors 65 and older whose annual income is $46,000 or less for a single person or $54,000 or less for a couple living together. Towns to be reimbursed for lost revenue.
  
• $1,000 property tax rebate when middle-class residents file their state income tax.
• Immediate elimination of the tax on manufacturing equipment, which is now being phased out.
• paid by millionaire's tax, surplus funds, temporary surcharge on real estate conveyance tax.

Phase II:

• paid by government reorganization and tightening up bonding
• $10,000 property tax credit for small businesses
• homestead and car tax exemptions
• boost in state education foundation grant
• fully funded payments to towns with high amounts of tax-exempt property (I assume that this is to replace the current STARR program, which reimburses 70% of taxes from universities, hospitals, etc., and this would affect us, with UNH and the Veteren's hospital being on site).

Also of interest from the article:

DeStefano, New Haven’s six-term mayor, has advocated for major property tax reform by making the state a fuller partner in support of education funding. Connecticut now is the most dependent state in the country on funding K-12 education through property taxes.

"Our dependence on bad property tax policy is not only costing us jobs and home ownership, but it’s resulting in bad educational and bad land use policy," said DeStefano, who in 2003 was chairman of the bipartisan Blue Ribbon Commission on Property Tax Burdens and Smart Growth Incentives.

Governor Rell
(as relayed through campaign spokesman Rich Harris)

• State to reimburse towns and cities for car taxes (effectively eliminating property tax on motor vehicles)
  
• supported by shifting some of Casino income
  

Some thoughts:

• I'm concerned about gubernatorial candidate DeStefano's plan to freeze the rates at the 2006 rates - our seniors won't be helped by that in West Haven. It's too little, too late.
• Why rebate property tax at the state income tax level? Why not eliminate up front?
• Anything that is reimbursed by the state to the towns means that we're paying for it in some way - either locally (property taxes), or state taxes (income or sales tax).