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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 , 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."

Michael Duff August 22, 2012 at 09:29 PM
It would be nice to know what tax loopholes you are talking about. By the way the Internal Revenue Tax Code is huge and impossible for anyone (working taxpayers) to make any sense of. Might I suggest the flat tax with a poverty line protection or scrape the Fed and State income tax and institute a fed and state VAT with a poverty line reimbursement. Then the only people who would file would be those who are below the poverty line and want a rebate on VAT paid. Just think of the reduction in time wasted. It’s too bad the present tax code is so convoluted. The only way it will be “fixed” is to demand that our elected officials fill out their own tax returns. I bet there is not one of them that do or could.

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