Will Aetna Follow General Electric & Bolt Dan Malloy’s High-Tax Connecticut?

When Failed Governor and DGA Chairman Dan Malloy threatened his $1.2 billion tax hike on Connecticut businesses, General Electric, Aetna and Travelers – three of Connecticut’s staples of business – all said they would look to relocate to a friendlier business climate if the hikes were passed. Malloy pushed the tax hikes anyway, and watched General Electric move their headquarters and jobs to Boston. Now, many in the state are worried Aetna will be next, following GE’s lead to become the latest company to bolt Connecticut’s toxic business environment. It’s very fitting that Malloy couldn’t find the time to comment, or assure the people of his state that he’s taking action to keep Aetna in Connecticut. But, conveniently for him, he did find time to campaign for Hillary Clinton’s presidential campaign.

“Gov. Dannel P. Malloy’s office declined to comment on Aetna.”

Lawmakers Concerned About Aetna’s Future In Connecticut
Hartford Courant; 2/1/2016

State legislators are concerned about a lack of strong statements from Aetna that have raised questions whether the company will remain headquartered in Hartford after an upcoming merger. Aetna is merging with Humana in a high-profile, $34 billion deal, and Aetna CEO Mark Bertolini says that Humana’s operations in Louisville will remain a core component of the company when the merger is completed. Aetna, though, has not made definitive statements about the headquarters location in the future.

“Absolutely, I have concerns,” said Senate Republican leader Len Fasano. “Aetna, along with GE and a few other companies, were the ones who spoke out when the budget first came out [in June] and said there were problems. We saw what GE did. They left. … They said, ‘We’re leaving because the state doesn’t get the problems.’ ”

“Aetna, I believe, is under the same impression that Connecticut is not going to fix its problems,” Fasano said. “They clearly said, ‘We are clearly committed to Louisville, Kentucky.’ Then when politics came into play, they said, ‘Well, for now, we’re in Hartford.’ Clearly, they’re leaving the state. I would suggest they’ve already done some clearing out of the state already. This just speaks to a Democratic majority who wants to put blinders on, who doesn’t want to see the facts because it doesn’t fit their narrative, and want to continue with the status quo. We are in deep trouble in this state. … We’ve gotta fix this state.”

Gov. Dannel P. Malloy’s office declined to comment Monday on Aetna.

Sen. L. Scott Frantz, a Greenwich Republican, said the state needs to have direct contact with Aetna to prevent a departure like GE. Regarding GE’s announced departure, Frantz said, “It was absolutely about taxes.”

Background: 

Malloy’s Connecticut Has Become Hostile To Business

MSNBC: Connecticut Is In Tatters. “Connecticut is a state that is absolutely in tatters. Dan Malloy’s tax increases have been devastating. GE left because Connecticut is hostile to business.” (MSNBC, 1/14/2016)

While Other Governors Are Driving Job Creation, Malloy Is The Exception. “Governors across America…are trying to make their states meccas for business. Governor Malloy is an exception. The last business to leave, please turn out the lights.” (“GE Escapes Connectitax,” Wall Street Journal, 1/14/2016)

Malloy Pushes Policies That Are Toxic For Business. “Since Malloy’s 2009 election, however, good days have been few and far between in Connecticut. Personal income and federal taxes continue to be some of the highest in the country. Though Connecticut has consistently ranked among the ten worst states for business, Malloy and his Democratic legislature continue to push forth tax-and-spend policies that are toxic to both corporations and individuals’ prosperity.” (“The General Electric Story,” Forbes, 1/25/2016)

Malloy’s Tax Increases Have Businesses And Jobs Leaving Connecticut

Malloy Signed A $1.4 Billion Tax Hike On Connecticut’s Middle Class And Businesses – The Second Largest Tax Hike In State History. “Following a late-night Special Session that eventually produced a final budget and implementer bills to support it, Gov. Dannel Malloy signed the budget in his office with top Democrats. In the end, the General Assembly approved some corporate tax increases that won’t go into effect for a year, as well as increased taxes for the wealthy and several other fees that add up to more than one billion in new revenues for the state.”  (Max Reiss, “Connecticut House Passes Late State Budget,” NBC Connecticut, 9/2/2015)

General Electric Left Connecticut After Repeated Tax Hikes. “General Electric’s decision to leave Fairfield, Conn., for Boston is another sad marker in the downhill slide brought about by Connecticut’s high-tax, high-regulation, anti-business policies of the last 25 years.Democratic Governor Dannel Malloy accelerated the state’s economic freefall with another huge tax hike passed last summer. Despite his 2014 re-election promise of no new taxes, Malloy signed a $2 billion tax hike that falls heavily on businesses and individuals. This came only a few years after his near $1.5 billion tax hike.” (CNBC, 1/25/2016)

After The Tax Hikes, General Electric, Travelers And Aetna All Said They Were Looking To Leave Connecticut. “In an unprecedented move that stunned leaders, three of Connecticut’s largest corporations — General Electric, Aetna and Travelers — criticized the legislature and Gov. Dannel P. Malloy on Monday for considering about $700 million in increased taxes on businesses over the next two years. GE was the first to issue a statement, saying early Monday that the proposed tax increases are ‘truly discouraging’’ and that the company would ‘seriously consider whether it makes any sense to continue” to remain in Connecticut.” (Christopher Keating, “GE, Aetna, Travelers Criticize State Tax Increases,” Hartford Courant, 6/2/2015)

Under Malloy, Connecticut Is Increasingly Bad For Business

Malloy’s Connecticut Ranks At The Bottom Of Forbes Best States For Business Rankings. “Forbes ranking the “Best States for Business,” the Constitution State came in at #39 out of 50. Why so low? Forbes gives Connecticut poor marks for business costs, regulatory environment, and economic climate.” (Josh Scheinblum, “Forbes Ranks Connecticut 39 Out Of 50 In Best States For Business Rankings, WTNH-TV, 11/18/2015)

Connecticut Is One Of The Worst States To Make A Living. “Connecticut…landed in the bottom 10. High unemployment is a problem in Connecticut, and even having one of the highest average wages in the country is not enough to make up for the cost of living in the state. Workplace safety is also a concern in Connecticut.” (Richard Barrington, “Worst Places To Make A Living 2015,” MoneyRates, 6/23/2015)

Small Business Owners Give Connecticut An “F” For Business Friendliness. “Texas, New Hampshire, Utah, Louisiana, and Colorado gave their states the highest rating for friendliness to small business. In contrast, small business owners gave California, Connecticut, Illinois, and Rhode Island an “F.” (Jon Lieber, “Connecticut Small Business Friendliness Gets An F,” Thumbtack, 9/2/2015)