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March 2008 — Vol. 86, No. 2

FROM THE PRESIDENT

CBIA urges policymakers to control spending, cut business entity tax

By John R. Rathgeber

CBIA President and CEO


CBIA is pleased Gov. Rell recognizes our precarious economic situation. She has proposed a revised budget for next fiscal year that keeps expenditures under the constitutional spending cap and does not raise taxes. We hope legislators follow her lead by controlling spending and acting in a fiscally responsible manner that will strengthen our economy.

We also support proposals of the governor, Secretary of the State Susan Bysiewicz and legislators from both parties to eliminate the business entity tax. That tax hurts small businesses, which create many of the state’s new jobs. Eliminating the tax is a good first step toward developing a long-range tax strategy that helps small businesses, encourages business startups, and fosters a climate that allows Connecticut companies to compete globally.

The governor has also raised the issue of property tax reform. CBIA believes that a reform plan must address property tax cost drivers and put spending controls in place to help municipalities better manage their finances.

Connecticut has the fifth-highest overall business costs in the nation. Businesses and people in Connecticut agree that reducing these costs and helping Connecticut’s economy grow are keys to the state’s future prosperity.

So are some of the proposals in Gov. Rell’s budget to encourage energy conservation and improve the environment.

Now all of these issues are in the hands of state legislators. CBIA is urging them to address three major areas: controlling the cost of doing business, developing a skilled workforce and improving the state’s transportation infrastructure. Focusing on these issues and helping state businesses remain competitive in today’s uncertain economic environment should be top priorities.

We hope lawmakers will work together to make the decisions that will help the state’s economy to grow, employers to succeed and young people to have better opportunities for the future.