How Democrats run Tax Policy: The Example of Connecticut

Raise Taxes and they decide what businesses you want. I disagree with the WSJ that this policy is arbitrary. If you want an example of how of this not being arbitrary, look at how Obama rewarded a campaign contributor with a half billion dollar very low interest loan to Solyndra.

For the latest instruction in arbitrary tax policy, we turn to Connecticut, where Governor Dannel Malloy is opening the state's coffers to retain businesses ready to bolt his new tax regime. Mr. Malloy has promised $20 million of forgivable state loans to UBS AG if it keeps at least 2,000 jobs in the Nutmeg State for five years.

Look for a line to form outside the Governor's office. Mr. Malloy parlayed a narrow election victory in November into a $2.6 billion new tax increase this spring, the biggest in state history. Key among the dozens of targets are state businesses. A "temporary" 10% corporate tax surcharge signed in 2009 by former Republican Governor Jodi Rell was extended, hitching Connecticut corporations with annual gross income of $100 million with a 20% surcharge for 2012 and 2013.

Mr. Malloy now says the state is "open for business," though it sure helps if the Governor likes your business. Under his "First Five" initiative, he offered tax perks to the first five businesses that brought 200 jobs to Connecticut within two years or pledged $25 million investment plus 200 jobs within five years. The lucky winners include health insurer Cigna Corp, sports network ESPN and a company called TicketNetwork, which will each get tens of millions in tax incentives. . . .

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