Malloy To Revisit Businesses Taxes, GE Looking Elsewhere
Connecticut Governor Dannel Malloy is leaving the door open for possible revision of business tax hikes approved by the legislature as General Electric looks at moving its headquarters out of the state in response to the increases.
The Democratic-controlled General Assembly agreed to a two-year $40 billion budget before midnight Wednesday despite rare lobbying by corporations protesting business tax increases meant to raise $700 million. Distancing himself from the budget awaiting his signature, Malloy says he’s spoken with General Electric and others about their concerns, adding that Connecticut has the second lowest corporate tax rate in the country.
“The legislature has decided to make some changes in that to support a budget,” Malloy said. “A budget which has been negotiated, not the budget that I purposed on February 18th. I think those discussions will continue not just for a special session, but continue on an ongoing basis.”
GE’s CEO sent an email to employees saying he’s assembled an "exploratory team" to review the company's options to move to another state with a "more pro-business environment." Senate President Martin Looney says GE is using the budget as a cover for planned layoffs. GE denies that. A special legislative session is expected in the coming weeks.