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Connecticut Governor Seeks to Lure Businesses Post-Roe

By: Lauren Loricchio


The governor of Connecticut has issued an open letter to businesses, touting the state’s protections for reproductive rights and its pro-growth environment and tax stability to lure businesses from states limiting access to abortion.


The letter, released July 1, comes on the heels of the Supreme Court’s decision to overturn the landmark decision Roe v. Wade, which held that there is a constitutional right to an abortion.


Noting that the decision means that access to reproductive rights will be decided by individual states, Gov. Ned Lamont (D) said, “There are far-reaching implications for businesses and workers located in states likely to severely limit access to reproductive rights in the coming weeks. For many of you, we can imagine that new restrictions will feel like a betrayal and cause concern about where to live and work. Customers and employees alike will be attracted to states that protect reproductive rights for all.”


Lamont said he is reaching out to “any business owner that is disappointed in the stance of their current state.”


“If you are looking to relocate to a state that supports the rights of women and whose actions and laws are unwavering in support of tolerance and inclusivity, Connecticut is for you. Connecticut has a record of providing equal opportunity to all people and one of the strongest records when it comes to protecting reproductive rights,” he said.


Lamont also touted the state's quality of child care and its paid family medical leave program, pro-growth environment, tax stability, and strong fiscal management as reasons for businesses to relocate to the state.


“We’re even providing the biggest tax cut in state history," Lamont said, referring to the $600 million in tax cuts included in the state's recently enacted budget. 


"Our workforce is well-known for its skill and productivity, and our team is investing in new initiatives to ensure our companies have the talent they need for the long run. We have an elite higher education system to provide the best home-grown talent you’ll find anywhere,” Lamont said.


Connecticut has a reputation for having high taxes and fiscal problems, though more recently the state’s general obligation bond ratings were upgraded in response to the state’s improved finances. The Tax Foundation ranked Connecticut among the bottom states in its 2022 State Business Tax Climate Index, which compares states’ tax systems. Low-ranking states have “complex, nonneutral taxes with comparatively high rates,” according to foundation.


The state made headlines in 2017 when Aetna Inc. announced it was moving its headquarters from Hartford to New York City. And in 2016 General Electric Co. announced it would move its headquarters from Fairfield to Boston as part of a deal that included $145 million in state and local tax incentives.


Republicans have argued the companies left because of the state’s high taxes and economic problems. However, some experts say it is part of a trend in which businesses are leaving the suburbs for cities.

Company Tax Notes
Category FREE CONTENT;ARTICLE / WHITEPAPER
Intended Audience CPA - small firm
CPA - medium firm
CPA - large firm
Published Date 07/01/2022

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Founded in 1970, Tax Analysts was created to foster free, open, and informed discussion about taxation. In 1972 Tax Analysts published Tax Notes Federal, its first weekly journal, featuring news, commentary, and analysis on federal taxation. In 1989 Tax Analysts added Tax Notes International, a weekly magazine focused on international taxation. Tax Notes State rounded out the weekly portfolio in 1991. Each magazine offers best-in-class tax commentary and analysis on the latest changes in tax law and policy, as well as on court opinions, legislative action, and revenue rulings.

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