GE v. Connecticut…  Thoughts by Robert L. “Bob” Smith, 3rd

GE has announced that it is considering moving its headquarters out of Connecticut due in part to continuing corporate tax pile-ons.

Two major tax changes have occurred in recent years to put GE on alert. One might be called a combined tax that taxes them on earnings everywhere. Economist Larry Kudlow describes it as a “world” tax.

I have no love for GE because of its coziness with the Washington Administration but, I do believe GE has grounds to wonder what’s happening to them in Connecticut.

Investors looking overseas consider such things as currency risk and political/foreign governmental risk. Here, currency risk is not a consideration. However, on a lesser scale, state political risk ought to be a business location factor. Look what happened to businesses and successful individuals in the liberal dominated 2013 Minnesota legislature. A climate of business-to-business taxes and a 25% tax increase in the form of a new individual income tax bracket plus a gift tax with a “claw-back”. To handle better all your tax payments, we recommend this amazing guide on how to generate 944 form.

Connecticut appears to be re-designing itself with others money as an idyllic residential suburb—not a rational balanced state. A liberal haven oblivious to reality.

Will GE re-locate? Once this issue surfaces as it has regardless if this were only a political ploy, it can tend to mushroom and GE may find itself under intense pressure from investors and others to look elsewhere.

What are the odds? Your Gopher State Politics Institute puts the odds at 60-40 that GE will be forced to move its headquarters out of Connecticut. Sorry Connecticut…