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.
GE claims the tipping point was Connecticut’s decision to move to a unitary tax. The provision forces corporations with operations in multiple states to declare profits and pay taxes in the state where the work took place, instead of shifting it onto the books in a state with lower taxes.
Harriet Jones from Here & Now contributor WNPR, explains more about what is behind the possible move.
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- Harriet Jones, business desk editor for WNPR in Connecticut. She tweets @wnprharriet.
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