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Bank's legal tax dodge hits Connecticut hard

Peter W. Quercia Willimantic

Publication: The Day

Published 03/28/2011 12:00 AM
Updated 03/27/2011 10:42 PM

Bank of America paid zero state income taxes last year, depriving the treasury of about $500 million. The state budget is $3.4 billion. This $500 million legal tax dodge would have helped.

Additionally, more than 500 part-time bank employees must rely on the state's Husky subsidized program for their children's health care. Bank of America money could have saved taxpayers $6.5 million last year.

And don't just blame the governor and legislature for being unfriendly to business. Since 2007, small-business loans here have plummeted 96.5 percent.

Meanwhile, Bank of America's CEO pocketed $10 million in stock, and $905,000 in bonuses, plus a $50,000 annual salary increase. All the while Bank of America lost $3.5 billion in 2010, yet enjoyed stiffing state governments out of billions.

Gov. Dannel P. Malloy is barnstorming the state via town meetings, pitching his $1.5 billion tax increase plan while gutting state services by almost $760 million. Again, Bank of America's half-billion tax exemption could have helped.

Bank of America is like the "Blob" in the 1950s horror flick. It keeps rolling ever larger, swallowing everything in its path. It is proliferating in size so much that someday our country may be renamed the United States of the Bank of America.

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