HARTFORD, Conn. (WTNH) — Jobs, jobs and more jobs being added in Connecticut. Military contractor Sikorsky, Pratt & Whitney and Electric Boat adding jobs. Now, the German company Henkel announced they will relocate their Corporate Headquarters from Arizona to Connecticut, bringing 266 jobs to our state.
They manufacture soaps, beauty products and adhesives; a wide range of products that will bring a wide range of jobs, says Eric Chen, a Professor of Business Administration at the University of St. Joseph.
“These are sales positions, these are R and D positions, these are product testing positions, so in my view they are on the upper-end of the food chain and it makes a lot of sense,” said Chen.
Connecticut will give Henkel up to $25 million in tax breaks. This on the heels of $220 million in state incentives to keep 8,000 Sikorsky jobs here in Connecticut.
So, is handing out big tax breaks to large corporations hurting the Connecticut taxpayer? Professor Chen says it’s a win-win for everyone.
“We would like to have these highly educated people in our communities, because those are the ones who make more money and those are the ones who spend more money in the economy and so it comes back in that way,” said Chen.
Connecticut is trying to create an economic environment in which these large corporations can thrive. Just across from the LOB in Hartford you have major corporations that have been around a while like Aetna and Travelers. The question is at the end of the tax year are they going to be coming to lawmakers looking for a tax break to see what they can do to improve their position?
New Haven Senator Martin Looney is ready for it.
“We have to deal with all of these things on a case-by-case basis. Our commitment is to maintain good paying jobs here. We have shown a string of success is here and we have to keep that going,” said Looney.
Looney believes corporate tax breaks are the way the future as the states bid and fight for high-tech, high-paying jobs.
“All of the states in the country right now are competing in this effort to try and attract businesses and we all have to offer incentives one way or another, so unless there’s a mutual cease-fire declared everywhere, this is just the reality of how we do it these days,” said Looney.