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Connecticut Caving to GE Over Tax Boost Magnifies Budget Stress

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It didn’t take long for Connecticut Governor Dannel Malloy to heed warnings from companies including General Electric Co. that they may move if the state raises business taxes.

Less than two weeks after the legislature approved the budget on June 3, the Democrat proposed scrapping the levies in the financial plan for the next two years and enacting spending cuts instead. The move shows even the wealthiest U.S. state is bumping up against the limits of its ability to boost revenue through higher taxes.