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Some Connecticut 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 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."

Daniella Ruiz September 30, 2012 at 11:28 AM
NO, i don't think they are NOT paying their fair share of taxes. But i do think they are sophisticated criminals who steal at will, for the pleasure of it. as a team of legalized criminals, they excel at parsing every word and clause that is so callously spewed forth by our legislators, who often take counsel (aka cut and paste) from other clever business consultants with a clear bias toward wealthy. rarely do we have legislators with enough intelligence to see beyond the immediate impact of their own 'prized document', and construct laws with ironclad concepts that are immune to attack from legal experts. as written, our current tax laws are an abomination, a sieve of opportunity for the wily and a travesty of destruction for the common person.

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