In an unexpected turn of events that surprised many, three of the largest corporations in Connecticut including General Electric (NYSE: GE), Travelers and Aetna (NYSE: AET) were seen criticizing the legislature for reviewing an increase of $700 million in the form of increased taxes on existing businesses over the next couple of years.
GE breaks the silence
General Electrics was the first one to make a statement on the issue and stated that the company is seriously considering whether staying in Connecticut will be beneficial to them anymore. In fact, the company went on to the extent of calling the proposed tax increase as truly discouraging and senseless. The company also believes that it is the responsibility of the legislative leaders of Connecticut to find a better and more responsible path for the city, while staying within their current budget. It came out to be taken as highly unusual because, General Electrics have always refrained itself from commenting publicly on taxation laws and spending proposals of the legislative leaders.
Strong worded statements from everywhere
Just a few hours after GE made their statement, Aetna also criticized the package that increases taxes on businesses by increasing the 20% surcharge on the company profits tax and by increasing sales tax on computer systems and data processing services from 1 % to 3 %. The company stated that raising taxes to this extent will certainly undermine the competition amongst Connecticut based businesses and may lead to a sudden shortage of jobs as well. Aetna also made a statement making it clear that they will be reconsidering the viability of working in Connecticut.
Mark Bergman, the Governor's spokesman said that the governor has been speaking with business executives lately. He added that they want the wealthier corporate communities to help with the State's development and also help it in the transformation of transportation and infrastructure systems in Connecticut.
The government has had many thoughts about the increase in taxes after these corporations made their statements. One of them was to remove a few of the unpopular taxes and substitute them on other products to fill the financial hole. Joseph Brennan, the president of the CBIA (Connecticut Business and Industry Association) said that it surprised him to see that more than one major corporations made such big statements on the same day and believes that if this doesn't make people to reconsider business taxes in the State, noting else will.