Budget Proposal a Disaster for Struggling Small Businesses

This is not a recipe for a recovery; it’s a roadmap for failure

CONTACT: Andy Markowski (860) 216-8810 or Jason Brewer (202) 406-4435

Hartford, April 2, 2009 – The following is a statement by Andy Markowski, state director of Connecticut’s leading small business association—the National Federation of Independent Business—reacting to the budget proposal unveiled today by Democratic lawmakers.

“Today’s budget proposal is an across-the-board disaster for entrepreneurs and job providers in Connecticut. Higher income taxes, higher property taxes and new corporate taxes will choke what little life remains from our economy.  

“This budget avoids making any tough decisions in Hartford, and instead puts the burden on the private sector to bail out a bloated state bureaucracy. It does nothing to address the underlying problem that got us into this mess: overspending. By raising taxes on small businesses and plugging holes in the budget with gimmicks and one-time fixes, this plan sweeps our structural problems under the rug and balances the state’s books on the backs of struggling small businesses.

“Proponents of this plan claim this is a tax on the rich, but any income tax increase will be a tax increase on small business, as 75 percent of small business owners report their business income through a personal income tax return. It is a tax increase on the same small businesses that are not only the engine of our economy, but the source of most new job creation. 
 
“A tax increase on small business will reduce the operating capital of growing businesses—at a time when banks are clamping down on loaning money. This will make it even more difficult for those small businesses hoping to expand to consider hiring, growing, investing or in some cases, surviving in this very difficult economy. This is not a recipe for a recovery; it’s a roadmap for failure.”