MORE EVIDENCE THAT LEGISLATORS IN CONNECTICUT HAVE A SPENDING PROBLEM
HARTFORD (April 29, 2015): Today, in a state whose combined state and local tax burden is the third highest in the country according to the Tax Foundation, the National Federation of Independent Business (NFIB), is having a very difficult time understanding why the legislature is engaging in a conversation regarding tax increases that will not only exceed the constitutional spending cap, but be detrimental to the small business community in every corner of the state.
“It’s absolutely appalling to see that even after Governor Malloy’s pleading with the legislature to make cuts and stay within the cap, the best solution that lawmakers can come up with is to raise income taxes on small business owners and increase the costs of new goods and services. Make no mistake about it, the proposed increase on taxable income will directly impact some small business store owners that pay their taxes as a pass through entity in Connecticut.” Said Connecticut NFIB State Director, Andrew Markowski. “In addition to hitting business owners hard, expanding the sales tax on goods and services that had previously gone untouched in combination with a capital gains tax surcharge will strongly discourage investments. It all spells out a disastrous outcome for tax payers across the state.”
Previously, members of the finance committee had indicated that they were willing to expand the sales tax which they irresponsibly claim will then be passed on to assist the middle class. Additionally, they will propose that another major segment of state finances be placed outside of the constitutional spending cap where the sky will be the limit for bloated government spending.
“Connecticut faced the largest tax increase in state history four years ago, something we have yet to recover from, and now the call is for even more taxes. Nothing has changed and yet lawmakers expect us to believe that they will repeal the increase at some point. Small business has seen this movie before and we already know how it ends.” Continued Markowski, “The results will be fewer jobs for the state and an even weaker economy than we are seeing from today’s national GDP report.”
Prior legislative sessions have discussed a plan to ultimately reduce the tax burden Connecticut faces however there has yet to be a proposal of substance that would accomplish even the slightest of a tax reduction. Not only is no assistance in sight, but out of today’s proposal came the threat to make some of the tax increases retroactive, which would crush any small business attempting to balance their books for the remainder of 2015.
“Today’s proposals have been downright frustrating. How can lawmakers possibly expect to enact a retroactive tax increase and not ruin our economy? Thanks to Hartford’s spending problem, Connecticut has been ranking among the bottom 10 states in the business tax climate index for as long as I can remember and if they get their way this legislative session, we will most likely fall to last place. There is no shortage of revenue in this state and in order for the small business community to survive in Connecticut, we must start slashing government spending and living within the means of what we already have so that we can begin to tackle our $1.3 billion deficit.” Concluded Markowski.
