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Connecticut Spends $860 Million on Businesses

It's one of dozens of states across the country that collectively spends $80.4 billion annually to lure business growth, the New York Times reports.

Connecticut spends about $241 per capita each year developing business growth, or $860 million annually, according to a report in the New York Times.

Connecticut is one of 45 states in the country that invests heavily in business development. Nationally, the country spends $80.4 billion on business incentive programs, the newspaper learned following a 10-month investigation. 

Of the $860 million Connecticut spends annually on business tax incentive programs, $392 million represents some type of tax discounts, including sales tax and other tax exemptions. Another $377 million represents corporate income tax credits or reductions, while some $90 million of the annual total represents cash grants, loans or loan guarantees to businesses. 

The top incentives by industry in Connecticut, the newspaper found were:

  • $218 million in Agriculture
  • $152 million in Manufacturing
  • $135 million in Technology

One of the top beneficiaries of the state's largesse is the Royal Bank of Scotland in Greenwich, which has gotten some $100 million in corporate income tax credits, rebates or reductions from Connecticut, the Times' data shows. 

Will Wilkin December 04, 2012 at 12:34 PM
How is the Royal Bank of Scotland in Greenwich manufacturing, technology or agriculture?
Will Wilkin December 04, 2012 at 12:40 PM
This whole story, gleaned from the NY Times, deserves some in-depth Connecticut journalism. Corporate welfare should be deployed strategically, ie, with clear goals for how the subsidized firm will affect employment, the mix of economic capabilities in the local economy, long-term benefits to the state ecoomy in broader multiplier effect jobs and industries. Somehow welfare to a bank doesn't seem to me to serve any of these larger needs, at least how much benefit could CT get by subsidizing the Royal Bank of Scotland? There is a lot of "story" here, waiting for some investigative journalism. Maybe already been done, would be interested to read more.
Will Wilkin December 04, 2012 at 12:48 PM
There is more discussion of the NY Times article in the comments under this article: http://www.tradereform.org/2012/11/what-if-we-did-trade-right/#comment-182331 The states are just competing against each other while the country as a whole bleeds 10,000 to 20,000 manufacturing jobs every MONTH due to "free trade" offshoring of factories and related industries, and seen in our 37 years of chronic and growing and unsustainable trade deficits. The dollar is heading 90 miles an hour down a dead end street, and our economy with it. The solutions will never be found at the state level. The USA needs Industrial Policy, a strategic national vision, a MADE IN USA TRADE POLICY. Don't expect Congress to advocate for the American people, they have been bought by those growing richer on the ruin of our country.

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