The corporate suits at General Electric issued a strong warning today. New tax increases about to be approved in the state budget could cause the Fairfield-based company to say sayonara.
Retroactively raising taxes again on Connecticut’s residents, businesses and services makes businesses, including its own, and citizens seriously consider whether it makes any sense to continue to be located in this state.
More here.
0
Great job, Dems.
In the future it should be mandatory for a Governor of this State to hold a business degree!
I hope they move. Bye Bye, GE.
But Jimmy, who will bring good things to light in CT if they leave?
Report: Bridgeport manufacturer to shut down
Posted on June 1, 2015 | By Alexander Soule
Sun Plastech
UPDATED at 7:22 p.m.
Sun Plastech plans to close Novachem’s Bridgeport location that employs eight people, according to Plastics News, moving production to Michigan.
ORIGINAL post
Bridgeport-based Novachem is being acquired by Sun Plastech of Parsipanny, N.J., with both companies manufacturing purging compounds used to break down resins that foul injection molders and other machinery used to produce plastic parts.
Novachem was founded in 1989 and has been led since then by founder and general manager Frank Van Haste. The company is located at 1450 Barnum Avenue in Bridgeport.
Sun Plastech is a subsidiary of Tokyo-based Asahi Kasei.
STRATFORD, Conn. (WTNH) — Stratford based Sikorsky Aircraft announced Tuesday it would cut 1,400 jobs over the next twelve months.
Sikorsky will consolidate facilities due to a drop in production volumes and lower investments in offshore oil projects. Sikorsky, a division of United Technologies Corporation, has locations on five continents, including thirteen facilities in the United States.
Paul Jackson, Director of Communications for Sikorsky, issued the following statement midday Tuesday.
Sustained decreases in oil prices continue to drive significant declines in capital investments by oil companies in offshore oil exploration projects impacting Sikorsky and resulting in reduced production levels. Additionally, Sikorsky continues to experience softness in demand for certain international military products.
As a result, we informed employees today of a global workforce reduction of approximately 1,400 production-related positions, which includes a mix of employees and contractors. These actions affect Sikorsky’s facilities in Poland, Pennsylvania and Connecticut and will take place over the next twelve months starting immediately. As part of this activity, the company will vacate smaller satellite facilities and consolidate remaining production volume into larger campuses in Poland, Pennsylvania, and Connecticut to include exiting its current facility in Bridgeport, Connecticut, and relocating employees to the Stratford, Connecticut facility. It is important to note that none of these announced layoffs are a result of the facility consolidation.
We will work closely with the impacted employees to ease the transition, and with all our employees, customers and suppliers to ensure continued delivery on all our business commitments.
News 8 will post additional details to this story as soon as they become available.
The Democrat leaders in Hartford are out of touch and out of control. They are making things worse rather than better and don’t seem to understand we have to compete for both businesses and residents. I hope GE does not move but I appreciate their issuing a “wake-up call” to Hartford lawmakers.
It starts. Go baby, go.
GE pays “zero” in federal taxes and is famous for moving funds to offshore accounts to avoid paying taxes.
I honestly don’t have any sympathy for GE having to pay increased taxes.
You do realize they take CT jobs with them when they leave, right?
Jobs jobs jobs. Hello?
Maria, careful what you ask for, you might get it!
GE only follows the rules our government has put in place. One of the reasons GE paid no taxes in 2011 is because they received “green energy” credits. If we don’t like the tax codes then it is our responsibility to elect those who will change them. Instead we vote the same people in election after election and expect things to change. Einstein called that insanity.
FYI: keep an eye on Sikorsky.
The 0 tax statements are not completely accurate.
www .factcheck.org/2012/04/warren-ge-pays-no-taxes/
Aetna Insurance also said they may leave, that would mean 4,000-5,000 jobs.
GE also employs Connecticut residents who pay taxes.
GE also supports education:
Beginning in 2005, the Developing Futures™ in Education Program supports high-impact initiatives that improve the equity and quality of K–12 public education in the U.S. This program has invested more than $225 million and thousands of hours to support student achievement and professional development for teachers in K–12 public schools across the U.S. In addition, the GE Foundation regularly convenes business leaders and educators to share best practices and drive impactful partnerships in education across 32 states.
If GE and Aetna are issuing public statements, I can assure you many more major businesses are thinking the same way. We should have the right to recall elected officials and we should seek to recall all officials who breach their oath to the State Constitution, among other things.
Add Travelers Insurance to the list.
‘Sad Day’: Conn. businesses, residents brace for $2B tax hike
He once promised to balance Connecticut’s books through spending cuts alone. Now Gov. Dannel Malloy says he’s ready to OK a nearly $2 billion tax increase.
A new budget, passed by the Democratic supermajority on Monday, will raise the state’s top tax bracket to 6.99 percent, from 6.7 percent, impose new taxes on businesses, and kill plans to cut the state’s sales tax.
“A brighter tomorrow will start with this budget today,” said Malloy in a statement a day before the final vote. “Most importantly, it helps us build a Connecticut for the long-term, making our state an even greater place to live, work, and raise a family.”
The new budget also kills a plan to reduce the state’s sales tax in October, from 6.35 to 5.85 percent. Along with the new tax hikes, Connecticut residents are expected to fork over $1.8 billion more in taxes in the next year.
Lawmakers hope it will help close what the administration says is a two-year $2.5 billion deficit.
Speaking in committee on Monday morning, state Sen. Scott Frantz said the tax hike represented “another sad day for Connecticut.”
Poor GE paid $2.3 Billion in dividends, they can afford to pay the taxes here in Connecticut. Here is the link for GE’s balance sheet, they are far from broke.
www .ge.com/sites/default/files/GE_AR14_Financial_Position.pdf
The idea GE, or any company, pays taxes is a fallacy. It would be the same as thinking your landlord pays taxes. The cost of taxes is built into the rent. The dividends GE pays represent income to real people. Those dividends are paid to shareholders, IRAs, pension funds and the like. Using some of those dividends to pay taxes is simply taking that money away from those people. Increased taxes on GE will be reflected in an increase in GE product cost. As product cost to the consumer is simply the product cost to the company plus 10%, GE could make up for the increased tax burden by reducing its workforce or decreasing salaries. Again, GE does not really pay the taxes. That cost is simply passed to the consumer, taken from the shareholder or the worker. If the tax burden rises to a significant level, GE will no longer be competitive and cease to exist.
David, money is the point. The state need the revenue because of the demands for services by the state’s citizens. Roads, bridges, better transportation system, the list goes on and on, the money has to come from somewhere and if GE were a good Corporate Citizen of Connecticut they would stop whining about it and pay up. This talk of moving, they could move and it will cost them at least a billion dollars.
Do you have a business? If so, as a good citizen of Fairfield do you give breaks and free labor to people you work for? Do you pay all the taxes you should? Would you like to pay more taxes? Let these companies move and you will find out.
finance.yahoo.com/q/bs?s=TRV+Balance+Sheet&annual
Not doing too bad
2) General Electric Company (GE)
After Hours: 27.36 Up 0.03 (0.10%) 4:54PM EDT
finance.yahoo.com/q/bs?s=GE+Balance+Sheet&annual
Not doing too bad
3) Aetna Inc. (AET)
After Hours: 117.59 Up 0.26 (0.23%) 4:54PM EDT
finance.yahoo.com/q/bs?s=AET+Balance+Sheet&annual
Doing well
All doing well but still need tax breaks from the taxpayer to survive. REALLY!!!
They all could well afford to help pay for better transportation in Connecticut.
James,
You are naive about business. Virtually every state would love to have GE, Aetna or Travelers HQ in their state and they have no duty of loyalty or obligation to be based in CT. Get real.