Connecticut and its Governor Dannel Malloy have been determined to create the most unfriendly and inhospitable environment for businesses to operate in the State. High personal and corporate taxes, massive budget deficits, and faulty budget deals have had the State’s largest companies scrambling to find new headquarters outside of Connecticut, in search of states more friendly to business.

Companies such as General Electric (GE), Aetna, Travelers, and Stanley Works have shared great concern over Connecticut’s attitude toward business. While GE was the first of these large companies to flee the State, they may not be the last to leave. As jobs, tax revenue, and business flee Connecticut, more business friendly states such as Massachusetts and Texas have been more than happy to poach businesses away from Connecticut.

General Electric Co., Aetna Inc. and Travelers Companies Inc. are unhappy that Malloy and Democrats are intending to raise more than $700 million through
additional taxes on businesses and individuals, including applying some increases retroactively.

Several states, including Georgia, Rhode Island and Texas, worked to attract GE. New York pressed hard to bring the headquarters to Manhattan or Westchester County. Connecticut tried to avoid losing one of its most iconic corporate citizens, though far from its largest employer.

GE has had a long and strained relationship with Connecticut, but the final straw to break the camel’s back was Connecticut’s budget that raised corporate taxes. GE described Connecticut as having an “inhospitable business climate,” forcing the Company to leave the state earlier than anticipated.

Relations with Connecticut took a turn in 2011 during a fight in Washington about a GE product that it wouldn’t even manufacture in the state: a proposed alternate engine for the F-35 Joint Strike Fighter. The primary contractor for the existing engine was Pratt & Whitney, a division of Hartford-based United Technologies Corp.

GE first publicly threatened its move in June, blaming a Connecticut budget deal that raised corporate taxes and what company officials described as an inhospitable business climate.

A GE spokeswoman said discussion revolved around ways to redefine the role of the corporate headquarters. And last year’s budget deal had prompted GE to hasten its exit, she added.

As 800 high-paid GE jobs leave Connecticut for Boston, the State is once again is faced with a massive budget deficit for this year and an almost insurmountable deficit for 2016-2017. The budget deficit next year is expected to approach near $1 Billion. Sadly, Connecticut’s misguided attempt to close the deficit has taken the opposite effect. By raising the corporate tax rate, businesses have chosen to flee the State instead of paying the price of higher taxes.

Officials in Massachusetts said Wednesday they had offered incentives worth up to $145 million to the conglomerate. GE, which since 1974 has been based in Fairfield, Conn., promised to bring about 800 jobs to Boston.”

And yes, this has no bearing on the projected $922 million budget deficit for the 2016-17 fiscal year, which begins July 1.

The hardworking taxpayers of Connecticut deserve better as money, jobs, and businesses continue to flee Connecticut’s inhospitable business environment created by Governor Mallory and the many years of devastating rule by Connecticut Democrats.