If you’re a successful business in Connecticut, you may end up paying a price for it under a bill that remains in the House.
HB 5280 makes certain businesses ineligible for state tax credits, abatements, or other financial assistance if any of their executives are compensated at a rate greater than 50 times the average compensation of non-executive employees.
Although proponents believe the bill would resolve perceived wage inequities, it more likely would discourage businesses from locating, creating jobs, or growing in Connecticut—worsening the state’s economic condition.
Businesses will ultimately choose a state that does not place caps on their potential success. HB 5280 also would result in less investment and fewer activities the state tries to encourage through tax credits –research and development of new products, apprenticeships, and philanthropic giving.
The General Assembly should take no action on HB 5280.