[BPt111]

http://www.ctnewsjunkie.com/archives...er_four_years/

Budget Deficit Estimated At $4.3B Over Four Years

In a report released Friday, the Office of Fiscal Analysis estimated that the state is facing a $254.4 million budget deficit in 2016 and a $552 million deficit in 2017, but the deficit grows even further to $1.7 billion in 2018 and $1.8 billion in 2019.

The governor’s Office of Policy and Management released similar deficit figures Friday: a deficit of $508.1 million in 2017, $1.3 billion in 2018, and $1.23 billion in 2019. Those numbers don’t account for inflation, like the projections used by the Office of Fiscal Analysis.

Both the Office of Fiscal Analysis and the Office of Policy and Management will present their reports to the two budget writing committees at 1:30 p.m. Wednesday.

Meanwhile, a bipartisan group of legislative leaders and Malloy are trying to close the current deficit through negotiations, which will culminate in a December special session.

The reason budget projections didn’t hit their mark four months into the 2016 fiscal year was because of income tax growth projections, which fell behind estimates. The Malloy administration lowered its estimate for personal income tax growth from 7.1 percent to 4.5 percent in September. In October the withholding portion of the tax was lowered from 5.2 percent to 3.2 percent.

State Comptroller Kevin Lembo told Malloy earlier this month that in 2005, when the economy was expanding, the withholding portion of the income tax grew 8.1

[Mr_250]

Originally Posted by HumpDay

Does Rhode Island even have a Fortune 500 company? It would be be really odd to see them relocate to Rhode Island.

They have 3.

Rhode Island still seems odd unless they will relocate to Providence Area. That way they have access to Logan & TF Green while being in a City atmosphere. But still, not worth it.

To me corporations have a personality, and GE does not seem like it would fit in Rhode Island. It has a NY attitude.

I see GE walk into a bar with slicked back hair rocking gold chains (NY stereo type) while I see a CVS walk into a bar wearing skinny jeans and a Nintendo T-Shirt (hipster).

After that, Connecticut might be looking really good.

[HumpDay]

Originally Posted by Mr_250

They have 3.

Rhode Island still seems odd unless they will relocate to Providence Area. That way they have access to Logan & TF Green while being in a City atmosphere. But still, not worth it.

To me corporations have a personality, and GE does not seem like it would fit in Rhode Island. It has a NY attitude.

I see GE walk into a bar with slicked back hair rocking gold chains (NY stereo type) while I see a CVS walk into a bar wearing skinny jeans and a Nintendo T-Shirt (hipster).

After that, Connecticut might be looking really good.

Moving to Westchester County from Fairfield doesn't make sense to me. It is closer to NYC but it's more expensive than Fairfield. If they're moving from CT because of the taxes then why would they move to a place with higher taxes? Unless NY is giving them more incentives than CT than that makes sense. At this point I see a 50/50 chance. I think some people would like to see them leave so they can continue their agenda to prove that CT sucks.

[BicoastalAnn]

Originally Posted by HumpDay

Moving to Westchester County from Fairfield doesn't make sense to me. It is closer to NYC but it's more expensive than Fairfield. If they're moving from CT because of the taxes then why would they move to a place with higher taxes? Unless NY is giving them more incentives than CT than that makes sense. At this point I see a 50/50 chance. I think some people would like to see them leave so they can continue their agenda to prove that CT sucks.

NY's corporate tax rate is lower than CT. source: State Corporate Income Tax Rates and Brackets for 2015 | Tax Foundation

And it's getting better... "Last year, New York policymakers enacted a substantial corporate tax reform package which, once fully phased in, will lower the corporate income tax rate from 7.1 percent to 6.5 percent, eliminate the capital stock tax, extend net operating loss carrybacks from two to three years, and remove the carryback cap. This year, New York extended the net operating loss carryback period and lifted the carryback cap (among other changes), which helped the state move nine places on the corporate tax component." source: 2016 State Business Tax Climate Index | Tax Foundation

That may not be saying much but seems like it's better than CT on a tax basis any way you look at it. Plus, GE employees living in CT can likely still stay there instead of paying the truly ridiculous property taxes in westchester.

[JayCT]

Originally Posted by BicoastalAnn

NY's corporate tax rate is lower than CT. source: State Corporate Income Tax Rates and Brackets for 2015 | Tax Foundation

And it's getting better... "Last year, New York policymakers enacted a substantial corporate tax reform package which, once fully phased in, will lower the corporate income tax rate from 7.1 percent to 6.5 percent, eliminate the capital stock tax, extend net operating loss carrybacks from two to three years, and remove the carryback cap. This year, New York extended the net operating loss carryback period and lifted the carryback cap (among other changes), which helped the state move nine places on the corporate tax component." source: 2016 State Business Tax Climate Index | Tax Foundation

That may not be saying much but seems like it's better than CT on a tax basis any way you look at it. Plus, GE employees living in CT can likely still stay there instead of paying the truly ridiculous property taxes in westchester.

If you look closely at the table, Connecticut's corporate tax is 7.5% up to $100 million. There is a 20% surcharge for companies making over $100 million so the rate then become 9%. Since GE is a master at income manipulation, I wonder if they pay 7% or 9%. Jay

[HumpDay]

Originally Posted by BicoastalAnn

NY's corporate tax rate is lower than CT. source: State Corporate Income Tax Rates and Brackets for 2015 | Tax Foundation

And it's getting better... "Last year, New York policymakers enacted a substantial corporate tax reform package which, once fully phased in, will lower the corporate income tax rate from 7.1 percent to 6.5 percent, eliminate the capital stock tax, extend net operating loss carrybacks from two to three years, and remove the carryback cap. This year, New York extended the net operating loss carryback period and lifted the carryback cap (among other changes), which helped the state move nine places on the corporate tax component." source: 2016 State Business Tax Climate Index | Tax Foundation

That may not be saying much but seems like it's better than CT on a tax basis any way you look at it. Plus, GE employees living in CT can likely still stay there instead of paying the truly ridiculous property taxes in westchester.

Hmm...didn't know NY's corporate tax was less than CT's. It's sad how at one point so many companies from NY moved to CT over the years because it was cheaper. Since so many companies were taking advantage of our lower taxes the government wanted more and more $ which led it to a downward spiral. There are consequences if you raise taxes and our state is getting hit head on because of its anti business policies.

[BicoastalAnn]

Originally Posted by JayCT

If you look closely at the table, Connecticut's corporate tax is 7.5% up to $100 million. There is a 20% surcharge for companies making over $100 million so the rate then become 9%. Since GE is a master at income manipulation, I wonder if they pay 7% or 9%. Jay

That's a good point... do any of these truly huge companies pay the "sticker price" anyway, or do they just get sweet tax deals to ride out before they move on!

[JayCT]

Originally Posted by HumpDay

Hmm...didn't know NY's corporate tax was less than CT's. It's sad how at one point so many companies from NY moved to CT over the years because it was cheaper. Since so many companies were taking advantage of our lower taxes the government wanted more and more $ which led it to a downward spiral. There are consequences if you raise taxes and our state is getting hit head on because of its anti business policies.

One thing to consider though is that New York counties can impose taxes on companies as well. New York City does but I am not sure about Westchester. You also need to consider that property taxes are much higher in New York as well. A company must pay property taxes on buildings, office equipment, computers, etc. which brings the total taxes paid well above what a company would pay here. Jay

[BobNJ1960]

Originally Posted by BPt111

CT News Junkie | Budget Deficit Estimated At $4.3B Over Four Years

Budget Deficit Estimated At $4.3B Over Four Years

Should be good for $8B of Malloy corp tax hikes, then whining when they leave.

[BPt111]

GE CEO:

General Electric CEO Jeff Immelt told a Stamford audience that included Gov. Dannel P. Malloy’s economic chief that GE will “always have a big presence in Connecticut” in his words, but confirmed the search for a new headquarters site is ongoing.

“I know what’s on everyone’s mind,” Immelt said. “We’re a company that ... doesn’t look for special deals, but we need an ecosystem that’s forward-looking, that’s future-looking; that’s willing to fight hard to be competitive and enduring for the future. We don’t want that just for GE — we want that for everybody that’s in this room ... That’s why we’re looking not just here but other places for where the eventual headquarters of the company will be. We will always have a big presence in Connecticut, but we think the power of an ecosystem is important.”