[BPt111]

Malloy: Connecticut to cut over 2,500 jobs under state budget deal | FOX 61

http://www.courant.com/community/har...510-story.html

[Mr_250]

This years budget is pretty much all set. A lot of layoffs, reduction in highway projects and reduction in muni aid. All well and good.

This is my prediction for next year is a tax increase. This is an election year and no one wants to raise taxes before that. Come January we will be seeing an increase of some kind. Mark my words.

[BobNJ1960]

Originally Posted by Mr_250

This years budget is pretty much all set. A lot of layoffs, reduction in highway projects and reduction in muni aid. All well and good.

This is my prediction for next year is a tax increase. This is an election year and no one wants to raise taxes before that. Come January we will be seeing an increase of some kind. Mark my words.

Perhaps individual tax rates, not corp. My hunch is the layoffs are due to the fact GE hq's move, and the threats of other corps, via public statements led Ct to prudently take care of this year's deficits via a RIF long overdue.

[BPt111]

Originally Posted by Mr_250

This years budget is pretty much all set. A lot of layoffs, reduction in highway projects and reduction in muni aid. All well and good.

This is my prediction for next year is a tax increase. This is an election year and no one wants to raise taxes before that. Come January we will be seeing an increase of some kind. Mark my words.

CT love taxes increase

[Mike 75]

Originally Posted by Mr_250

This years budget is pretty much all set. A lot of layoffs, reduction in highway projects and reduction in muni aid. All well and good.

This is my prediction for next year is a tax increase. This is an election year and no one wants to raise taxes before that. Come January we will be seeing an increase of some kind. Mark my words.

That's assuming the Dems keep control of both the House and the Senate in November, which is not a given. Its quite possible that the Senate goes red.

[JayCT]

Originally Posted by BobNJ1960

Perhaps individual tax rates, not corp. My hunch is the layoffs are due to the fact GE hq's move, and the threats of other corps, via public statements led Ct to prudently take care of this year's deficits via a RIF long overdue.

I doubt it had much more impact than Mercedes decision to move 1,000 jobs from New Jersey to Atlanta. GE's move of (only) 200 jobs to Boston may have given light to the matter but I doubt it was the cause. Remember in GE's announcement there was no mention of taxes in their decision to move and they are moving to a state with only marginally lower taxes than Connecticut.

I think the state legislature and Governor realized that their past budgets were not sustainable given the revenue the state was going to get. During the recession the state made the conscience decision to not add to the unemployment levels in hopes that the financial part of that decision could be resolved in the future. Here we are several years later and the finances are still not good enough despite a major improvement to the economy. The results are layoffs to balance the budget. Jay

[BPt111]

Dan Haar: Is There A Way To Reach A State Budget Without A Rubber-Stamp Vote From Lawmakers? - Hartford Courant

http://www.wfsb.com/story/31954864/q...autostart=true

[CTDex]

Originally Posted by JayCT

I doubt it had much more impact than Mercedes decision to move 1,000 jobs from New Jersey to Atlanta. GE's move of (only) 200 jobs to Boston may have given light to the matter but I doubt it was the cause. Remember in GE's announcement there was no mention of taxes in their decision to move and they are moving to a state with only marginally lower taxes than Connecticut.

I think the state legislature and Governor realized that their past budgets were not sustainable given the revenue the state was going to get. During the recession the state made the conscience decision to not add to the unemployment levels in hopes that the financial part of that decision could be resolved in the future. Here we are several years later and the finances are still not good enough despite a major improvement to the economy. The results are layoffs to balance the budget. Jay

Maybe not in their announcement but the point about taxes was all over the financial news (Bloomberg, WSJ, etc...)- people who follow and invest in GE were well aware of it as being a reason.

GE started their search in earnest when the issue of a tax increase came up and likely toned it down as a reason so they didn't appear too greedy.

[JayCT]

Originally Posted by CTDex

Maybe not in their announcement but the point about taxes was all over the financial news (Bloomberg, WSJ, etc...)- people who follow and invest in GE were well aware of it as being a reason.

GE started their search in earnest when the issue of a tax increase came up and likely toned it down as a reason so they didn't appear too greedy.

Sorry but you are wrong on a number of points. The process of relocating started at GE years before they announced their move. They were soliciting for consultants to evaluate what could be done with their Fairfield campus more than 3 years before. I had noted that here back when we began the discussions of GE.

Of course the financial media "claimed" it was taxes. They ALWAYS complain about taxes. That is their job. They are appealing to the business community and would NEVER support tax increases or heck even reasonable taxes to support anything outside their narrow field.

And why wouldn't GE list taxes as the reason if it truly was a reason? They are already well known for being a "greedy" corporation by not paying taxes for years now and moving massive amounts of money offshore to avoid taxes. Plus if taxes were truly the motive, they would NOT have gone to Massachusetts whose taxes are marginally less than ours. Also they would NOT have kept the thousands of jobs they have here

Sorry but all of the above points to the GE relocation being something other than taxes, plain and simple. It points to a major industrial company trying to reinvent itself in the digital era where technology is king and manufacturing is looked down on. Maybe it will work but maybe it won't. We will see in time. Jay

[CTDex]

Originally Posted by JayCT

Sorry but you are wrong on a number of points. The process of relocating started at GE years before they announced their move. They were soliciting for consultants to evaluate what could be done with their Fairfield campus more than 3 years before. I had noted that here back when we began the discussions of GE.

Of course the financial media "claimed" it was taxes. They ALWAYS complain about taxes. That is their job. They are appealing to the business community and would NEVER support tax increases or heck even reasonable taxes to support anything outside their narrow field.

And why wouldn't GE list taxes as the reason if it truly was a reason? They are already well known for being a "greedy" corporation by not paying taxes for years now and moving massive amounts of money offshore to avoid taxes. Plus if taxes were truly the motive, they would NOT have gone to Massachusetts whose taxes are marginally less than ours. Also they would NOT have kept the thousands of jobs they have here

Sorry but all of the above points to the GE relocation being something other than taxes, plain and simple. It points to a major industrial company trying to reinvent itself in the digital era where technology is king and manufacturing is looked down on. Maybe it will work but maybe it won't. We will see in time. Jay

I'm not wrong.

Just because they began a search years ago doesn't mean they were committed to it, nor does it mean that they were happy with the higher taxes when they began. CT was already a high tax state 3 years ago and this could very well have precipitated the initial search.


Numerous corporate entities continuously explore the possibility of relocation, of services, of manufacturing, of vendors, even of their headquarters. It's often hot air but we don't know the exact reason.


There is no doubt that GE's heated up during the past summer in direct response to complaints over taxes. GE was whining nonstop about taxes and just because they issued a "press release" doesn't erase what happened in the past.


The financial media does not always claim it's about taxes. I can't recall much griping about much of the tax policy in the southern or Western regions of the U.S. While you can't compare CT to them there is a distinct difference that is often noted.


But the financial world is key and GE's investors are the main drivers behind the company. And GE made it clear to them that taxes were a reason and they could get a "better deal" elsewhere.

Personally, I don't think taxes were the sole reason for their move, nor do they entirely explain their move to Boston but to pretend that they had nothing to do with it is also incorrect.