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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."

Keep the river front for all of us August 23, 2012 at 05:47 PM
If this wasn't so SAD it would almost be funny.
Robin Hood August 27, 2012 at 02:58 PM
It's worse than that. Republicans are going around saying we have to shut down S/S, medicare, education, anything that costs money, this is all so that they can keep affording to not pay taxes and get a rebate/refund. So far from what I have been able to determine this costs us at least 2-3 trillion a year but it may be more. You have to factor in that these large corporations not only pay nothing into the system, they take from it, and so do their CEO's so it's a double whammy. You also have to realize it is they who rewrite our tax laws every year, they tweak them, fine tune them to their satisfaction, the IRS can't even keep up with the changes.

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