NFIB HIGHLIGHTS DIRE CONSEQUENCES OF TAX PACKAGE TO SMALL BUSINESSES ACROSS THE BOARD

HARTFORD (May 15, 2015): This week the National Federation of Independent Business (NFIB), the state’s leading small business organization, highlighted a group of small business owners in the state of Connecticut that will each be on the receiving end of detrimental economic consequences if the Finance Committee’s budget proposal is passed. Services that the members provide include veterinary care, engineering, internet processing services and construction. All of which will see a dramatic tax increase on their businesses that they noted will lead to layoffs and the potential closing of their doors as well as an increase in cost passed on to consumers. 

“We have heard overwhelmingly from the thousands of members that we have in the state in a wide variety of businesses that this revenue package leaves them with nowhere to go but down.” Said Andrew Markowski, State Director of NFIB Connecticut. “Lawmakers will have you believe that these tax increases can go unnoticed by consumers but our members are imploring the public not believe the hype.

NFIB members that voiced their concerns this week included Dr. Chip Beckett Beckett & Associates Veterinary Services, Wendy Traub of Hemlock Directional Boring and Gary Cuozzo of ISG Software Group. 

“Whether it be increased costs associated with Veterinary care, a brand new tax on internet processing or a detrimental change to how businesses are able to close out their books at the end of the fiscal year, this bill is bad for small employers, and even worse for the customers that are serviced by these providers.”

Markowski was referring to the net operating loss carryforward change that will make it nearly impossible for companies like Wendy’s to close out their books at the end of the fiscal year. Because construction companies cannot always control whether or not a project will be completed by that time, the change to the carryforward law will be an accounting nightmare. For companies already operating on slim profit margins, absorbing that cost will have to lead to big changes in staffing levels, increased costs to consumers, or worse yet, both. 

“Reducing the use of net operating loss carryforward to a maximum of 50% of a company’s liability per year is a fiscal shell game lawmakers are playing with small businesses money.” Continued Markowski, “It will no doubt discourage new entrepreneurs from operating in Connecticut and will result in essentially a retroactive tax increase for those that are impacted by it.”