Your Survival Guy

Preparing your investments and family for when disaster strikes.

Disclosure

  • Home
  • Your Survival
    • Special Report: FOOD SHORTAGE: Crazed Hoarding Is Not Preparing
    • Your Survival Guy’s Super States
      • 2023
      • 2022
      • 2021
    • Constitutional Carry
    • EMP Threat
    • Tucker Explains
    • Newport Gas Outage
    • Water
      • Emergency Water Storage
      • Let There Be Water
    • Get Your Gun and Your Training Now
    • Satellite Phones
    • Navy SEAL Survival Kit
  • Your Money
    • Coronavirus Infects Stock Market
    • Looking for a Better America
    • You Invest, They Win
    • Where to Keep Your Cash
    • Paris
    • How to Buy a Boat
    • Dead or Alive? The Future of Long-Term Investing
    • Is Vanguard too Big?
    • Cryptocosm and Life After Google
    • The Last Intelligence Report
    • The Truth Behind the S&P 500
    • RAGE Gauge
    • How Many “Retirees” Will Keep Working?
    • Your Retirement Life
    • You’ll Love This if You’re Dreaming of an Active Retirement Life
  • Weapons
    • Self Defense
    • Every Family Should Own at Least One Shotgun: Here Are Three
  • About Me
    • Your Survival Guy: “Life on Main Street Hasn’t Been This Hard in a While”
    • Preparing for Times Like These
    • My Videos/Pics
    • Music
      • RIP Neil Peart: You Will Always Be Remembered as a “Modern-Day Warrior”
    • Your Survival Guy: Make Your Bed and The Hero Code
  • You
    • Our Cabin on Kodiak, Alaska
    • If You Are in Pain, this May Help. It Helped Me.
    • How to Save for a Grandchild
    • FIRE! Financial Independence, Retire Early
    • Compound Interest
    • Arithmetic of Portfolio Losses
    • Maximum Portfolio Withdrawal Rate
    • An Efficient Frontier
    • Retirement Compounders
    • Counterbalanced Total Returns
  • Survive & Thrive
    • June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
    • May 2023: “I’m Having Major Surgery Tomorrow,” He Said
    • April 2023: Will the Black Swan Usher in Digital Dollars?
    • March 2023: How Long Have You Been in the Investment Business?
    • February 2023: 4 Life Changing Words: “You Should Try This”
    • January 2023: Stacking Wood and Compounding Money
    • December 2022: Your Survival Guy Prefers Bombardier’s Global Express 7500
    • November 2022: Arriving in Style at Le Bristol Hotel, Paris
    • October 2022: Sink Your Teeth into These Bond Yields
    • September 2022: Do You Have the 7 Habits of Highly Effective People?
    • August 2022: “Watch This Boat off Our Stern,” My Dad Said “He’s Coming in HOT”
    • July 2022: MONEY TALKS: Your Survival Guy’s Best Service in Paris
    • June 2022: “I’ve Been with Richard Young for Over 30 Years Now”
    • May 2022: Survive “If You Fail to Plan, You Plan to Fail”
    • April 2022: Dream On! Fishing the Double Down in Key West
    • March 2022: Your Survival Guy Hears the Craziest Investing Stories
    • February 2022: Your Survival Guy’s 2022 Super States
    • January 2022: The Least Affordable Housing Market in the U.S.
    • December 2021: Listen Your Survival Guy is not “Mr. Peanut”
    • November 2021: Joe Biden is Weaponizing Your 401(k) Against You
    • October 2021: Time to Get Your Lazy Cash Off the Couch
    • September 2021: What’s Your Survival Guy Investing in Right Now?
    • August 2021: To Where Will You Flee?
    • July 2021: This Bubble’s Popped Baby
    • June 2021: Your Survival Guy’s Summer Job, Inflation & You
    • May 2021: You’re Telling Me Friends Ask You This Question
    • April 2021: Is There One Best Place in America for ‘Liberty Retirees?’
    • March 2021: America’s Growth Corridors
    • February 2021: Troops in D.C. & Your Authoritarian Virtual Panopticon
    • January 2021: Are You Ready for The Great Reset?
    • December 2020: Disaster Prep in Our Newport Bunker and Your Survival
    • November 2020: Election 2020 Edition: Stock Market is Predicting a Trump Win
    • October 2020: You Invest They Win, AGAIN
    • September 2020: Proud to be an American: Pro-Trump Parade Turns Rhode Island Red
    • August 2020: The Clock is Ticking: You Must Protect Your Family
    • July 2020: What Will Her Life Be Like Now?
    • June 2020: Your Survival Guy’s Home (and Money) Protection Plan
    • May 2020: Future Look at Covid-20, or the Next Deadly Virus
    • April 2020: Only Trump Saw the Risk in America’s Relationship with China
    • March 2020: Coronavirus Infects Stock Market
    • February 2020: Escape the City: Live Small, Cheap, and Safe in America
    • January 2020: Is Your Cash Safe? Probably not This Safe
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • Welcome

If Connecticut’s Goal Is to Drive Away Business, It’s Working

June 19, 2019 By E.J. Smith - Your Survival Guy

By ra2studio @ Shutterstock.com

The Wall Street Journal’s editorial board explains the Connecticut strategy succinctly when it writes “Thus we have Connecticut’s business model: Raise costs for everyone and then leverage taxpayers to provide discounts for a politically favored few.”

If You’re Serious, Sign Up for My Email. But Only If You’re Serious.

By raising taxes on all corporations and individuals, Connecticut makes owning a small business very difficult. If a major corporation can lobby for better tax treatment, small businesses are even less capable of competing. Small businesses are the powerhouses of the American economy, putting them at a disadvantage to big corporate interests is a losing strategy.

And now, even United Technologies, one of Connecticut’s biggest business interests is heading for the exits. The conglomerate has called Farmington, CT, home, but as part of its plan to buy Raytheon, the company will relocate its headquarters to Boston.

The board writes:

United Technologies last week announced plans as part of its merger with Raytheon to relocate its headquarters to Boston from Farmington, Connecticut. CEO Greg Hayes says the move isn’t motivated by taxes. But as a new study documents, more businesses are leaving Connecticut as they get walloped with higher taxes that are bleeding the state.

Democrats in 2015 imposed a 20% surtax on top of the state’s 7.5% corporate rate, effectively raising the tax rate to 9%. They also increased the top income tax rate to 6.99% from 6.7% on individuals earning more than $500,000. The state estimated the corporate tax hike would raise $481 million over two years, but revenue increased by merely $323 million—$161 million a year—according to a new Yankee Institute report.

Meantime, the state’s Department of Economic and Community Development, whose job is to strengthen “Connecticut’s competitive position,” in 2016 alone spent $358 million (mostly on direct payments and loans) to induce businesses to stay or move to the state. This means that Connecticut doled out twice as much in corporate welfare as it raked in from the corporate tax increase.

As the Yankee Institute notes, the business handouts cost even more than that since the state tapped bond funds to pay for them. Thus we have Connecticut’s business model: Raise costs for everyone and then leverage taxpayers to provide discounts for a politically favored few. A business that operated like this would lose customers and eventually go bankrupt.

That may be where Connecticut is headed. The state has lost population for the last five years. In 2016 GE announced it would move its longtime headquarters from Fairfield to Boston. Hallmark, RBS, Bristol-Myers Squibb , Boehringer Ingelheim Pharmaceuticals andRogers Corp. have also announced job cuts or moves. Alexion Pharmaceuticals , which received $26 million from the state, checked out of New Haven in 2017.

The exodus has depressed tax revenue. While United Technologies will continue making jet engines in Connecticut, at least for now, 100 high-paying corporate jobs will move to Boston. Massachusetts has a flat 5.1% income tax.

Read more here.

I have regularly warned about the strategy Connecticut lawmakers are attempting:

  • Despite Past Failure, Connecticut Taxes More and More
  • Connecticut Just Doesn’t Learn: Now Targets the Middle Class With New “Sin” Taxes
  • Connecticut: Big Government Utopia Begins to Crack
  • Despite its High Taxes, Connecticut Can’t Pay its Bills
  • Wealthy Connecticut Can’t Tax its Way to Stability
  • Connecticut’s Exodus Driven by Punishing High Taxation

In the internet age, American businesses can setup shop in states that treat them best. Geographical restraints are diminishing as a concern for businesses and wealthy individuals who want to protect their wealth and incomes.

That’s why I encourage everyone to investigate thoroughly before they choose where to retire. You should too.

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy Facebook profileMy Instagram profile

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
My Twitter profileMy Facebook profileMy Instagram profile

Latest posts by E.J. Smith - Your Survival Guy (see all)

  • Rome, Paris, U.S.A.: Global Crisis in Confidence - June 2, 2023
  • Your Survival Guy’s Best Insider’s Guide to Rome - June 2, 2023
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary? - June 2, 2023
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson) - June 1, 2023
  • Birth Rates in France Worst Since Post-WWII Era - June 1, 2023

If you enjoyed this post, email it to a friend:

  • Email
  • Print
  • Facebook
  • LinkedIn
  • Twitter
  • WhatsApp

Related Posts

Money 101

Trending

  • A Three-Week International Research Trip to Paris via Rome
  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Two More States Nearing Passage of Permitless Carry Legislation
  • What Does That Have to Do with Your Dividend?
  • Letter to the Federal Reserve Chairman from Your Survival Guy
  • The ESG Cartel
  • Social Security: Declining Italy Needs a Bambino Boom
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare

Must Reads

  • Invest with Peace of Mind and Comfort
  • PREPPING: You Don’t Have to Save the World in a Weekend
  • Don’t Let Your Lazy Cash Eat all Your Food
  • Bad Guy with a Gun STOPPED by Good Woman with a Gun
  • Yes, Your Children Are Listening to You
  • Survival: Lost in the Woods Bending the Map
  • When Markets Fall, All Is Not Lost
  • “I Need Preservation of Principal and Growth”
  • Your Investment Focus Is the Foundation for Success
  • What You’re Telling Me Matters

Recent Posts

  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Birth Rates in France Worst Since Post-WWII Era
  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Social Security: Declining Italy Needs a Bambino Boom
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare
  • The Future of the American City is This…
  • Happy Memorial Day: Your Survival Guy: Proud To Be an American
Only if You’re Serious
Crazed Hoarding Is not Preparing
How to Save Rainwater Effectively
Your Survival Guy in Paris
Key West Insider Guide
Your Survival Guy's Fishing Stories
Financial Independence, Retire Early
Money 101
Pandemic Creates Virtual Panopticon
Emergency Water Storage
Find Freedom in America
Second Amendment
How Can You Save Money for Your Grandchild
Great Reset
See Who's Missing the Boat
Richard  Young Reports
How You Can Save Money for Your Grandchild
Why Fidelity is Number One
The Best States for Survival
You Invest, They Win
Escape the City
Why Vanguard is Too Big for YOU
Island Life

Copyright © 2023 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.