RGA Statement On General Electric Leaving Dan Malloy’s High-Tax Connecticut

January 13, 2016

WASHINGTON, D.C. – The Republican Governors Association released the following statement regarding the news that General Electric, one of Connecticut’s largest employers, will leave the state because of Gov. Dan Malloy’s anti-business policies and move to Boston:

“General Electric’s decision to move their headquarters and jobs from Connecticut to Massachusetts is a direct result of Democrat Gov. Dan Malloy’s failed leadership and eagerness to drive business out of his state through job-killing policies,” said RGA Communications Director Jon Thompson. “GE made it clear to Malloy that if he pushed his $1.2 billion tax hike on business, they would leave. Now, they are making good on that promise. This action by GE further proves that Malloy, as the Chairman of the Democratic Governors Association, will be a major liability to Democrat gubernatorial candidates everywhere in 2016.”

Background:

Boston Globe: GE Said To Pick Boston For Headquarters

General Electric Co., one of the most storied names in corporate America, will relocate its global headquarters to Boston, according to an official familiar with the process. GE’s quest for a new global headquarters can be traced back to a decision by Connecticut Governor Dannel Malloy and Connecticut lawmakers last spring to significantly change business tax policies, to help fill a big state budget gap. The package, among other things, altered how multistate companies collect corporate taxes and how losses can be used to reduce tax bills over a period of years. But its passage sparked Immelt to write an irked memo to GE employees, saying that the unfriendly business climate had prompted his leadership team to consider moving the headquarters out of state. GE wasn’t the only big company that was upset.

Malloy’s Tax Increases Have Businesses And Jobs Leaving Connecticut

Malloy Signed A $1.4 Billion Tax Hike On Connecticut’s Middle Class And Businesses – The Second Largest Tax Hike In State History. “Following a late-night Special Session that eventually produced a final budget and implementer bills to support it, Gov. Dannel Malloy signed the budget in his office with top Democrats. In the end, the General Assembly approved some corporate tax increases that won’t go into effect for a year, as well as increased taxes for the wealthy and several other fees that add up to more than one billion in new revenues for the state.”  (Max Reiss, “Connecticut House Passes Late State Budget,” NBC Connecticut, 9/2/2015)General Electric Is Looking To Leave Connecticut After Repeated Tax Hikes.“General Electric, one of the world’s largest companies, has dropped a bombshell on its home state of Connecticut: It’s looking to relocate to another state. As part of an attempt to plug a deficit, Connecticut lawmakers decided in June that its corporate citizens weren’t doing their part. So they proposed levying $700 million in new business taxes on them. GE responded by saying it would consider leaving Connecticut.” (Harriet Jones, “General Electric Looks To Leave Connecticut,” WBUR, 10/1/2015)

General Electric, Travelers And Aetna All Say They Are Looking To Leave Connecticut. “In an unprecedented move that stunned leaders, three of Connecticut’s largest corporations — General Electric, Aetna and Travelers — criticized the legislature and Gov. Dannel P. Malloy on Monday for considering about $700 million in increased taxes on businesses over the next two years. GE was the first to issue a statement, saying early Monday that the proposed tax increases are ‘truly discouraging’’ and that the company would ‘seriously consider whether it makes any sense to continue” to remain in Connecticut.” (Christopher Keating, “GE, Aetna, Travelers Criticize State Tax Increases,” Hartford Courant, 6/2/2015)

Under Malloy, Connecticut Is Increasingly Bad For Business

Malloy’s Connecticut Ranks At The Bottom Of Forbes Best States For Business Rankings. “Forbes ranking the “Best States for Business,” the Constitution State came in at #39 out of 50. Why so low? Forbes gives Connecticut poor marks for business costs, regulatory environment, and economic climate.” (Josh Scheinblum, “Forbes Ranks Connecticut 39 Out Of 50 In Best States For Business Rankings, WTNH-TV, 11/18/2015)

Connecticut Is One Of The Worst States To Make A Living. “Connecticut…landed in the bottom 10. High unemployment is a problem in Connecticut, and even having one of the highest average wages in the country is not enough to make up for the cost of living in the state. Workplace safety is also a concern in Connecticut.” (Richard Barrington, “Worst Places To Make A Living 2015,” MoneyRates, 6/23/2015)

Small Business Owners Give Connecticut An “F” For Business Friendliness.“Texas, New Hampshire, Utah, Louisiana, and Colorado gave their states the highest rating for friendliness to small business. In contrast, small business owners gave California, Connecticut, Illinois, and Rhode Island an “F.” (Jon Lieber, “Connecticut Small Business Friendliness Gets An F,” Thumbtack, 9/2/2015)