Other states encouraging CT companies to move [WFSB]

June 11, 2015


WFSB 3 Connecticut

HARTFORD, CT (WFSB) – The list of states trying to lure Connecticut’s largest employers is growing.

Indiana has made it public that if Aetna, GE or Travelers don’t like the tax increases in the budget, they said they should move.

On Monday, New York and Georgia had the same sentiments.

However, democratic leaders said companies like GE have gotten away without paying taxes, and it is time to pay their share.

The state of Indiana paid for a full page advertisement in the Wall Street Journal that said “GE, Aetna and Travelers: We offer our support in the wake of Connecticut’s looming tax increase, because friends don’t let friends pay higher taxes.”

“The one silver lining in our corporate tax structure, it was OK but now with this tax increase, it’s horrendous,” said Republican State Senator Kevin Witkos.

There is certainly no love lost between the two states.

Earlier this year Gov. Dannel Malloy slammed Indiana Gov. Mike Pence over the state’s controversial Religious Freedom Act.

Connecticut’s budget is also causing some backlash among hospitals.

Hartford HealthCare said the budget will cost them $100 million.

“The net result is when you roll up the impact of tax plus Medicaid cuts – we really need to reduce services and there will be job loss,” said Dr. Rocco Orlando of Hartford HealthCare.

However, some Democrats said hospitals should consider lowering million dollar salaries to executives, and when it comes to GE, State Rep. Matt Lesser said they have gotten away with not paying corporate taxes by shifting the burden onto their subsidiaries.

“GE made $149 billion in revenue last year, they are doing fine,” Lesser said, adding that it is unfair small businesses pay corporate taxes yet GE shifts costs out of state and even out of the country.

A special session will be held later this month, but there are no plans as of yet to adjust the corporate taxes.