In response to President Donald Trump’s tax bill that limited state and local tax deductions – known as SALT deductions – Connecticut developed a novel way to allow business owners to avoid getting hit with higher federal income taxes. Businesses that operated as “pass-through” entities, which allowed business income to ...
Connecticut slid backwards in the Tax Foundation’s annual ranking of states based on their business tax climate. Connecticut ranked 44th in the nation - one ranking lower than last year - and far behind Massachusetts, which ranked 22nd in the nation. Connecticut, however, did beat out New York and New Jersey.
The Connecticut Business and Industry Association and BlumShapiro released Friday their annual survey of businesses in Connecticut, showing state taxes and regulations are the biggest roadblocks to business growth and expansion. The three biggest challenges to growth cited by the businesses surveyed were costs associated with state regulations, taxes and “unpredictability surrounding legislative decision making.”
General Electric announced this week it would move its headquarters from Connecticut to Boston, Mass., highlighting the need for policies focused on increasing opportunity for all Connecticut residents. While many officials tried to cast blame elsewhere, GE officials warned lawmakers the company would consider moving if they went ahead with what amounted to a 40 percent increase in corporate taxes.