Under Failed Governor Dan Malloy and his Democrat Enabler’s high-tax, anti-jobs policies, another major company is leaving Connecticut and taking hundreds of jobs with it. Alexion Pharmaceuticals has announced it will relocate its headquarters to Boston, joining General Electric and Aetna as the latest company to move its headquarters out of the state on Malloy’s watch. This loss is another blow to Malloy’s failed legacy, and makes it even tougher for Connecticut Democrats to hold onto the governorship in 2018.
Alexion Pharmaceuticals (ALXN) is the latest corporate giant to announce it will relocate its headquarters out of Connecticut, a trend that could spell trouble for the state.
Alexion, which will open its new headquarters in Boston next year, cited access to a larger talent pool and more potential corporate partners as part of the reason for its move. Additionally, as it transitions about 400 jobs to Massachusetts, the company expects to save about $270 million each year as part of a larger restructuring process, allowing for a significant amount of reinvestment into research and design.
Earlier this year, both General Electric (GE) and Aetna (AET) said they would be abandoning their Connecticut headquarters, too. Aetna maintained its flagship location in the state for more than 150 years, but will relocate to New York City late next year. Meanwhile, General Electric said it will move its headquarters from Fairfield, Connecticut, where it had been stationed since 1974, to Boston.
These relocations could spell trouble for Connecticut, which has been operating without a budget since the onset of the new fiscal year in July, as it seeks to remain economically competitive.
Tax increases in Connecticut have burdened big businesses operating within the state for years. In 2015 GE, Aetna and Travelers (TRV) wrote a letter to Gov. Dannel Malloy (D-Conn.) saying they were considering “whether it makes any sense” to remain in the state in light of a tax hike approved that year. Aetna said it paid $65 million annually in state taxes to Connecticut as of 2015 and expected that total to increase by 27% as a result of the business tax increase.
Without tax income from GE and Aetna, Connecticut’s financial situation could worsen. The three major rating firms have downgraded the state’s rating in response to an ongoing budget crisis. In a recent downgrade, which landed Connecticut with the third-lowest rating out of every state, Moody’s said a dwindling population is contributing to both a weak labor-force growth and a crippled housing market.