Filed under: Democrat Corruption, Economy, Taxes | Tags: Business Climate, Excessive Taxation, Free Markets
Basic Economics. Connecticut is one of the worst states in the country when it comes to business taxes. The state is now looking at another round of business tax hikes. With their latest budget, the Connecticut legislature has now increased business taxes five times since 2011, forcing companies located in the state to pay the fifth highest tax rate in the nation.
With the latest increase, accountants will be working overtime to deal with the new budget that includes nearly $2 billion in tax increases, including a $700 million increase in business taxes.
Bright politicians know an opportunity when they see one. Governors Mike Pence of Indiana and Greg Abbott of Texas pay attention. Republicans both, the governors have written to the corporate leadership of GE, Aetna, and Travelers, inviting them to tour their states and investigate the tax advantages that Connecticut can no longer provide.
Bloomberg reported that Abbott’s letter boasted of a $3.8 billion tax-cutting package approved by the Texas legislature in May that included a 25 percent cut in the business franchise tax. That alone would save companies in Texas a total of $2,5 billion in the next ten years.
Pence wrote that “Businesses in Indiana grow with confidence, while businesses in high-tax states like Connecticut operate in fear of seeing their piggy banks raided,” wrote Pence. “On behalf of 6.7 million hardworking Hoosiers, we are constantly meeting with companies around the world that are choosing Indiana and enjoying an instant spike in earnings. With Connecticut taxes skyrocketing, it’s important to remind businesses that Indiana is here to help as a state that works.
Fifty percent of Connecticut residents in a poll over the last year said they would leave the state if they could, but they can’t sell their houses because nobody wants to move in because of taxes.
Legislative leaders Sharkey, Looney and Duff ( sorry, I couldn’t resist) Senate President is Martin M. Looney, Majority Leader Robert Duff and Speaker of the House Brendan Sharkey, were all pleased with their budget which contains major property tax relief and long term investments in transportation. “A brighter tomorrow will start with this budget today” said Gov. Malloy.
Texas and Indiana are standouts in the nation for their low taxes and successful economies. We’ll see how many Connecticut businesses decide to relocate..
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