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Some CT Companies, CEOs, Finding 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 , 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."

JimH August 22, 2012 at 03:41 PM
"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," This statement seems to insinuate that the money is not rightly the companies to keep and that all money belongs to the government first. The companies aren't wrong for wanting to keep as much of their money as they can. These "loopholes" are put in by politicians in order to wield power. Stop electing politicians who use the tax code as a tool in order to grant carve-outs for political allies. Insist on a flat tax.
Sean M August 23, 2012 at 01:59 PM
God forbid a company make money. If these whiny greedy liberals would put their energy towards being productive instead of hating successful people, their lives would be much better. Then again, they would not be liberals anymore. Maybe the author will complain about the money being borrowed by the state so Gov Malloy can dish it out to his crony business friends.

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