HB 5055 – A New Deal For Sikorsky; Government Picking Losers and Winners

Posted on May 3, 2022

HB 5505 is more corporate welfare. It picks winners and losers when it comes to who gets tax incentives and who doesn’t in Connecticut. Winner today: One major defense contractor. Loser: Other Connecticut business owners who don’t get such deals.

Corporate welfare is irresistible for politicians. Again, remember Henry Hazlitt’s One Lesson in Economics. Even if Sikorsky has suppliers who are helped, bottom line, corporate welfare is a special deal for special interests. It needs to stop. We need broad based tax reform to benefit ALL businesses.

This is an 8-year, $75M sales, use and corporate tax credit deal for Sikorsky if they win one or two major contracts and promise to stay in CT for 20 more years, securing 7000 jobs in state. The bill is quite detailed in the parameters of this quid pro quo deal bill including a social justice element for Diversity workplace training program.

As a reminder to everyone, in 2016, Sikorsky got a $250M state aid package to stay in Connecticut. On April 5, 2022, Chris Powell, CT columnist, called for barring military contractors from corporate welfare.

You can read the language of the bill here. This bill passed with 130 yeas and 14 nays. I voted nay. You can see how the House voted here and how the Senate vote here.

Also note that this bill came to us as “emergency certification”, meaning, it was fast-tracked and received no public hearing. Seems to me like an abuse of the e-cert process.