NEW YORK (TheStreet) -- Shares of General Electric (GE) are falling 0.06% to $27.25 on reports that the company may explore moving its headquarters after Connecticut passed a budget that includes $1.2 billion in tax increases for some of the state's biggest corporations, Reuters reported.
On Wednesday, lawmakers approved a $40 billion biannual budget, CNBC.com reported. The budget would increase business taxes by around $500 million over two years, Reuters pointed out. The measures, extend a 20% surcharge on corporate tax, and introduce a tax on group-wide income even if it originates out of state.
CEO Jeff Immelt sent an email yesterday to GE's Connecticut employees saying that he had asked the team to examine the company's options to relocate the headquarters to a state with a "more pro-business environment," according to Reuters. He claimed GE's state taxes have increased five times since 2011.
"I believe we should pay our fair share and that all of us should give back to our communities. But, we can compare Connecticut with other states where small and large businesses have a better environment to thrive and compete," Immelt wrote in the email, CNBC.com noted.
GE currently has about 5,700 employees in Connecticut.
Separately, TheStreet Ratings team rates GENERAL ELECTRIC CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL ELECTRIC CO (GE) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."