The Constitution State left behind as national economy surges
HARTFORD (April 18, 2018) – A national economic report of all U.S. states ranked Connecticut at No. 50, or rock-bottom, for its economic performance. The Rich States, Poor States report just released by the American Legislative Exchange Council, also places Connecticut at No. 40 for its bleak economic outlook.
National Federation of Independent Business (NFIB) in Connecticut, which advocates on behalf of thousands of small and independent businesses in the state, said the news doesn’t bode well for the economic health of every business and resident, or the state’s economy.
“This is a dubious distinction for the Constitution State which is likely to send companies that are looking to expand to more competitive states,” said NFIB’s State Director in Connecticut, Andrew Markowski. “This worrisome economic news can be tied to decisions by state policymakers that have hindered business growth, while the rest of the nation is on a roll .”
The report looked at the economic performance by reviewing Connecticut’s Gross Domestic Product (GDP), which has fallen below U.S. levels, the departure of residents from the state, which has remained high for several years, and employment levels, which have flatlined. The economic outlook is determined by evaluating fifteen state policy variables, including taxes, labor costs, and state expenses as well as debt.
“This news comes just as our legislators are considering new, higher labor costs for small business, such as a $15 minimum wage and an expanded paid leave mandate,” added Markowski. “Ill-advised policies like these that will only make Connecticut die on the vine as other states bear fruit,” added Markowski. “We hope lawmakers will instead consider lower taxes and reduced regulations. Those changes seem to have done the trick in driving national economic growth.
“The state’s small-business owners currently face high costs for energy, development, unemployment insurance, regulatory compliance, and health insurance. Pile on to that, the estate tax results in the shuttering of family companies, when heirs can’t afford those taxes. All of this is counter-productive. State lawmakers need to reconsider and instead lighten these burdens on business, or Connecticut will continue to fall further and further behind.”
