UConn report: Hospital tax sickening state economy
A University of Connecticut report is citing hospital taxes as the main reason for a projected economic slump in the state.
The report states that job growth will grind to a halt within the next year, and that the new state budget with more than a billion dollars in new taxes will only exacerbate the situation.
One of the main factors contributing to the projected downturn, according to the report, is hospital taxes. Some surgery centers, such as Stamford Hospital, are facing a new 6 percent tax this year. The report states that the tax, combined with Connecticut's decision to cut Medicaid funding, will lead to the loss of $200 million in federal assistance.
Stamford Hospital COO Kathleen Silard says the developments will create a chain reaction throughout communities.
"We are providing a boon of more than a billion dollars of economic growth to this community," said Silard. "Now, we're going to have to look at ways to reduce that."
The report represents a one-two punch for Gov. Dannel Malloy. Republican Florida Gov. Rick Scott will be in Norwalk Friday trying to convince local businesses to trade in The Nutmeg State for The Sunshine State.
Other companies, like GE, have already threatened to bolt over the new taxes.