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Connecticut Companies, CEOs, Find Lucrative Tax Loopholes

A new report says several state firms paid little or no income taxes last year and one got a $176 million refund.

Though it made $1.4 billion in profits last year Traveler's, the Hartford-based insurance giant, got back a $176 million tax refund from the Internal Revenue Service. It is one of several entities in the state that makes millions, or even billions, of dollars in profits each year but finds ways under the current federal tax structure to avoid paying taxes, according to a story in the Connecticut Mirror.

The story is based on a report by the Institute for Policy Studies, called "Executive Excess 2012: The CEO Hands in Uncle Sam's Pocket." In it, the Washington, D.C.-based think-tank says that while public sector budget cuts "have axed 627,000 public service jobs just since June 2009," billion-dollar companies and their highly paid chief executives have found ways to avoid paying taxes that would help ease the burden on the middle and lower classes. 

"These tax dollars are flowing from average Americans who depend on public services to the kingpins of America’s private sector. They’re subsidizing, directly and indirectly, the mega-million paychecks that go to the top executives at our nation’s biggest banks and corporations," the Institue says.

In Connecticut, the Mirror reports, "Travelers and other large corporations, including AT&T, Boeing and Citigroup, used provisions in the tax code to pay little or nothing in taxes while their CEOs averaged $20.4 million in compensation."

R Eleveld August 23, 2012 at 03:14 PM
Our Legislators that drafted the abomination called the tax code are at fault. Every taxpayer has a right to pay as little in taxes as possible. Each reader wants to pay less in taxes. Each taxpayer wants to pay as little as possible. I have no issue with the result of a company or peson paying low taxes as it is Congress enacting the laws, and people or entities using every little opportunity to minimize their tax liability. Lastly remember businesses DO NOT PAY TAXES. They modify the prices of goods or services to include the amount they may owe in taxes. The purchaser of the good or services are the ones that actually pay the taxes. All taxes are bourne by the purchasers. I am not saying businesses should not pay taxes. I am making sure individuals are aware that its the poor that are hurt most by these taxes. Raise the tax on the bread company and the purchaser of the bread pays the tax in the price of the bread. The poor arguably use a greater share of their income for that loaf of bread so they bear a greater cost. The sae applies to everything a person purchases and that government purchases. Remember raise busiensses taxes and over a year or two the prices of goods and services also rise.

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