The Indiana Economic Development Corporation took out a full-page ad in the Wall Street Journal today Wednesday criticizing Connecticut’s $1.5 billion dollar corporate tax increase and touting Indiana’s business-friendly policies.
The ad that was placed in the Connecticut, New Jersey and New York versions of the Wall Street journal bears this message: “Friends don’t let friends pay higher taxes.”
The ad specifically names General Electric, whose executives have been threatening to leave Connecticut because of tax increases. But Indiana University tax law professor Ajay Mehrotra says that’s not likely to happen.
“When there is a state tax hike there’s often is a lot of rhetoric from businesses that they’re going to leave, but leaving isn’t easy to do. Relocating employees, picking up plant equipment and things like that, it’s not an easy task,” Mehrotra says.
Indiana Fiscal Policy Institute President John Ketzenberger points out though, that there could be indirect benefits from Indiana’s ad.
“It’s really probably not about moving the headquarters, it’s when you’re doing something new or expanding something you’ve got going on, keep us in mind,” Ketzenberger says.
Ketzenberger adds that the state is likely conducting behind the scenes efforts as well to attract Connecticut businesses.