NFIB’s state director for Connecticut, Andrew Markowski, released the following statement today in response to Gov. Ned Lamont’s first budget address.
“Our members appreciate that the governor is focused on economic growth and making it easier for employers to navigate state government, and they’re glad he’s against higher income and business taxes, but he’s sending mixed messages when it comes to small business. Governor Lamont wants to spend more and impose costly new mandates that will drive up the cost of doing business in Connecticut.
“Our members agree it’s time to eliminate the Business Entity Tax, and they’re glad he’s against higher taxes and running the state on borrowed money we can’t afford to pay back.
“But we’re concerned about Governor Lamont’s support for raising the state minimum wage by nearly 50 percent and expanding Connecticut’s mandatory paid family leave law.
“Raising the minimum wage from $10.10 an hour to $15 may be popular, but that money is going to have to come from someplace. If the legislature raises the starting wage to $15 an hour, it will force employers to get by with fewer employers. And while big companies might be able to afford to pay workers who can’t come in, many small businesses can’t. If the state expands mandatory paid leave, a lot of work simply won’t get done.
“And while we are still analyzing the details of the proposed changes to the sales tax, it’s worth remembering that small businesses often struggle with compliance issues, and any expansion of the sales tax to more services could make things even worse for them. Business-to-business services will remain exempt, but small businesses are concerned that any tax increase on their customers could affect sales or send customers out of state.
“Our hope is that legislators and Governor Lamont will think carefully about some of these proposals and work with small businesses to create an environment where they can expand and create jobs.”
