Fairfield’s Democratic First Selectman Mike Tetreau, in an interview with Steve Krauchick From Doing It Local, weighs in on General Electric’s threat that the tax hikes backed by Governor Dan Malloy and the Connecticut General Assembly could force the town’s largest taxpayer to bail out of the state. GE, its headquarters located a stone’s throw from the Bridgeport line, has deep roots in the city including property on Boston Avenue that is slated to become the new home of a high school to replace Harding.
Tetreau says in the short term GE has made a number of large investments to its current corporate facility. He added, however, that in broader terms the state needs to create a business friendly environment.
From a long-term strategic standpoint Connecticut has to start being more business friendly …. There are only two ways we can grow jobs in Connecticut. Either by getting new companies to move in or by getting existing companies here to expand. If it’s not a business friendly environment companies here won’t expand, they’ll expand elsewhere. Companies from the outside won’t move in. So I think in the short term the real danger is companies here don’t look to expand here in Connecticut. We can’t grow jobs in Connecticut without our existing companies expanding or new companies moving in.
www .ge.com/sites/default/files/GE_AR14_Financial_Position.pdf
They are far from broke, they can well afford to pay the taxes here in Connecticut.
James, you don’t get it. It isn’t an issue of whether they can afford to, it is whether they want to be here or somewhere else. This state spends too much, taxes too much, regulates too much, has bloated welfare and state compensation systems, huge debt and unfunded retirement obligations, and a deteriorating infrastructure. The state has very high energy costs and a high cost of living. These could be dealt with if we had a Governor who would tell the truth, make tough choices, and bring people together rather than continue one-party and bully governing approaches. The problem is, the current proposed budget approach makes the situation worse rather than better. It violates the Constitutional spending cap and raises taxes by over $2 billion over two years. Many states would love to welcome GE, Aetna, Travelers and other major CT employers. That is the reality of the situation.
Dave, right on!
Both Finch and Malloy, bring good things to life!
The same can be said and has been said about those in Black Rock complaining about high taxes. Didn’t Dave Walker make the same threat of moving out due to high taxes in Bridgeport? How many companies/businesses from mom and pops to large ones have closed or moved already in the past decade? Dave Walker’s comments below deserves a like button installed below it. Both Senators from Bridgeport are connected by the hip to State or all and any union.
James, what about small businesses?
James–sure they can afford to pay the taxes, but why should they? GE is a stockholder-owned company and has an obligation to its stockholders to make as much for them as it can. If GE can save $10 million per year by moving someplace else, they will. They have to. It is required they do by the stockholder/business agreement. If James’ GE stock stops returning a decent profit, he will sell it for another stock.
I am sure James can afford to pay his mortgage but if he can save $150/mo by refinancing with another bank, he would. His current bank may even think James is an ingrate for taking his business elsewhere. Look at all they did for him by giving him the loan in the first place. We all do it. We change credit cards for a lower interest rate. We shop at Walmart for better prices even when we do not agree with their business practices. We convince ourselves Walmart chased all the other businesses away and we have no other choice, but we do. We leave Bridgeport for lower taxes and GE will do the same to Connecticut. Look at the trend of retirees leaving the state for greener pastures. Is GE any different? The reason James is so flippant is when he changes credit cards it is in his best interest. When/if GE moves, James is the bank.
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.
The posts so far reflect comments of the informed versus the clueless. GE is a popular college class topic. It is so many things.
JL, GE should be a good corporate citizen and pay up? Spoken like a true ‘progressive.’ GE has fewer employees now than in 1984. It has more employees in India than the United States. They could spend a billion dollars to relocate, then write it off as a business expense.
In capitalism, efficiency and effectiveness are key to survival. The Democratic party thinking in Connecticut is to identify ways to spend, and then figure out how to pay for it. Connecticut government (the Democrats) have created a bloated bureaucracy that is inefficient and ineffective. It taxes to provide government services rather than supporting an environment that creates jobs.
In capitalism, efficiency and effectiveness are key to survival and their main loyalty is to the bottom line. Capitalism is not “loyal” to America, they will relocate overseas and pay slave wages to any country in order to make their profit.
Ron, and businesses pay dividends to private citizens, investors, pension funds, etc. and their goal is to make a profit and share it with their stakeholders. The reason companies go overseas is because of current U.S. Government policy. We can all be as outraged as we want, but the companies are operating within the regulations our government sets forth. Our economic policy has always been based on capitalism and free market, but who could foresee how global that market became so quickly, and that banks and large corporations would be in the pockets of and control our elections and elected officials.
Best job in CT? Well, we compensate our non-safety (police and firefighters) 42% MORE than similar private-sector employees. If we clean up our own house first, citizens and business would perhaps find a reason to stay in this state.
www .aei.org/wp-content/uploads/2014/04/-biggs-overpaid-or-underpaid-a-statebystate-ranking-of-public-employee-compensation_112536583046.pdf