The Cato Institute flunked Gov. Dannel P. Malloy’s tax and spending record in a new report, ranking him above only Illinois’ governor nationally.
The think tank gave New Jersey Gov. Chris Christie a B grade and New York Gov. Andrew Cuomo a D.
Cato Institute scholar Chris Edwards faulted states in part for expanding tax incentives that the institute said “clutter the tax code in an attempt to micromanage the economy.” Malloy raised taxes $1.8 billion, Edwards stated, and “had the gumption” in his words to tout relatively small tax credits he implemented as far reaching.
“Malloy is a good example of a governor who creates a more hostile climate for businesses in general, but then tries to compensate for the damage with tax incentives,” Edwards wrote in the report. “The truth is that Connecticut would be more ready to compete in the global marketplace if the governor hadn’t put in place one of the highest corporate tax rates in the nation.”
Malloy has defended the tax increases as necessary to closing budget deficits he inherited. Under his “First Five” program, Connecticut has used tax incentives to lure the headquarters of Charter Communications Inc., NBC Sports and Cigna Corp., among nine expansions to date each involving at least 200 new hires.
Among other states, grades bestowed by the Cato Institute included:
- Florida Gov. Rick Scott, A;
- Maine Gov. Paul LePage, A;
- Pennsylvania Gov. Tom Corbett, A;
- New Hampshire Gov. John Lynch, B;
- Massachusetts Gov. Deval Patrick, B;
- Rhode Island Gov. Lincoln Chafee, D; and
- Vermont Gov. Peter Shulin, D.
