Connecticut is learning the hard way: Taxes have consequences.
Aetna, Travelers, General Electric and other big employers are talking of quitting the Nutmeg State in the wake of Gov. Dannel Malloy’s $1.3 billion tax hike.
That’s sparked a bidding war as New York and other states woo the unhappy firms, presumably with tax breaks.
In June, CEO Jeffrey Immelt told workers GE is thinking of moving its headquarters, and 800 jobs, from Fairfield. Last month, Gov. Cuomo went visiting to whisper sweet (if pricey) nothings in GE execs’ ears.
Cuomo’s playing a sucker’s game.
For starters, New York has one of the nation’s worst overall tax burdens. So the gov will likely need to spend a hefty share of New York tax dollars to hook GE.
Mind you, our issue is with tax relief that goes only to GE — and not to other firms, even though companies with under 500 workers have long accounted for half or more of New York’s private-sector jobs. This is both unfair and economically foolish.
Far wiser for Cuomo to learn from Hartford: If jacking up taxes infuriates companies, slicing taxes can win their love.
True, Cuomo has made some small progress in taming New York’s levies, having pushed through cuts in business-tax rates and a Â2 percent cap on hikes in property taxes.
But Albany’s a long way from changing its grim tax picture: The Empire State still ranks among the worst states for businesses.
If Cuomo truly wants to attract firms to New York, he should look to Connecticut — and do the opposite.