Democratic report, CBIA at odds over threat to jobs

While the Connecticut Department of Labor reported strong job growth Thursday, some economic observers worry that jobs could leave the state. Where those jobs would go is a point of disagreement.

Congressional Democrats issued a report Thursday that warned nearly 200,000 Connecticut jobs could be at risk of being moved overseas.

With state labor leaders, U.S. Rep. Rosa DeLauro, a Democrat representing the 3rd District, decried the GOP tax plan passed in December 2017 at a news conference.

“It is unspeakable that President Trump and Republicans would advance a tax bill that promotes outsourcing,” she said. “That is why earlier this year, I introduced the Close Tax Loopholes That Outsource American Jobs Act. My bill would undo this incentive to outsource, striking the provisions of the tax law that allow for a lowered tax rate abroad.”

But Pete Gioia, an economic adviser to the Connecticut Business Industry Association, said with lower corporate tax rates here in the U.S., the GOP plan incentivized companies to bring their money back — not move more business overseas.

“Is there a threat of Connecticut outsourcing jobs elsewhere? Yes. But it’s not overseas ... it’s to other states because we are having trouble filling jobs,” said Gioia. “Companies that have operations in other states may say, ‘Oh geez we can’t fill the jobs in Connecticut, maybe we’ll fill them in Tennesee and North Carolina and Florida and Texas.’ That could happen. That’s a threat.”

He said Connecticut needs better job training programs to fill existing vacant positions.

The Democrats’ report identified two provisions of the tax plan that they believe encourage companies to move tangible assets like factories abroad.

Workers in the insurance carrier, aerospace manufacturing, computer systems design, company management, accounting, technical consulting, depository credit intermediation, architecture, engineering and scientific research services industries would be most vulnerable, the report said.

“I talked to steel workers yesterday, and BIC is laying off 134 workers because they are offshoring some of components of lighters,” said Lori Pelletier, president of the AFL-CIO, a union representing those workers. “They are in the midst of it now, and they are getting Trade Administration assistance… It’s a side-effect of our policies.”

Gioia said mostly, Connecticut jobs in those sectors have not been lost, though.

The Connecticut Department of Labor reported Thursday that the state added 24,000 jobs year over year.

That’s “the best performance we’ve seen since the ’80s,” said Gioia.