Dan Malloy is at it again spending Connecticut Taxpayers monies in yet another corporate welfare scheme. Winners get picked daily by the Connecticut Democrat Party.
This time in an effort to stop the hemorrhaging of the upcoming losses for the Connecticut Democrat party in the November election, Malloy negotiated a massive $220 million dollar taxpayer subsidy to Sikorsky, a subsidiary of Lockhead Martin which is a $46.3 billion dollar corporation. Supposedly this complex arrangement allows for 200 of the taxpayer funded CH-53K King Stallion heavy-lift helicopters to be built in Connecticut for the U.S. Navy until at least 2032. After 2032 is apparently anybody’s guess and by that time I am sure the agreement will be long lost. And in 2032 Sikorsky will threaten to leave Connecticut and a new and even larger Connecticut Taxpayer funded subsidy will be granted. Note that Lockheed Martin bought Sikorsky from United Technologies Corporation last year for a mere $9 billion dollars.
Looking more closely at this agreement I wonder how this benefits Connecticut Taxpayers who are funding it? For example, sales and use taxes will be exempted up to $5.7 million dollars a year over the term of the agreement. That will cost Connecticut Taxpayers $361,950. yearly. If they exceed target level employment by a mere 100 to 550 jobs in any year of the agreement Connecticut Taxpayers will be on the hook to pay them a performance incentive grant of $1.9 million dollars a year for a total of up to $20 million dollars.
Thus we have more of the same for Connecticut Taxpayers, higher personal and business taxes for most and many exemptions for those companies in the state of Connecticut that are politically connected. Here is some realistic math for this subsidy. $220 million dollars of your tax monies is being used to help subsidize a $46.3 billion dollar company. For corporations who can negotiate these types of sweetheart deals it does not better than that. And once again Connecticut Taxpayers get left out of the gravy train that we call Connecticut state government. For Connecticut Taxpayers is yet again another lose, lose irrational economic policy. When will it ever stop? Not in my lifetime apparently.