Fiscal Policy
If state revenues cannot meet the state’s expenses, those
expenses have to be re-evaluated and reduced. Any tax increase would
only weaken the competitiveness of Connecticut companies that are
struggling to succeed in the global economy.
Encouraging greater productivity from state government is the best
way to control state spending. Taxpayers expect lean, efficient
and effective government services, with state government payroll
and benefit costs consistent with those in the private sector.
CBIA recommends:
State Spending:
- Adopt a new, two-year budget that is balanced without the use
of tax increases that would harm the state’s economy and
cost jobs.
- Keep spending under the state’s spending cap and reject
efforts to weaken the cap.
- Bring state employees’ benefit and salary costs more
in line with current practices in the private sector.
- Adopt economic-impact statements to better determine how proposed
legislation would affect Connecticut’s economy.
- Institute a long-term plan to lower debt-service costs in the
operating budget.
- Develop uniform state contracting rules in a manner that facilitates
the state’s ability to acquire goods and services efficiently
and expeditiously.
Business Taxes:
- Reject any new or increased taxes that would harm the state’s
economy and cost jobs.
- Preserve the 100%, five-year property tax exemption for new
manufacturing machinery and equipment, and adopt a plan to phase
out the tax entirely.
- Reject efforts to shift more of the property tax burden onto
the business community through a homestead exemption or a surcharge
on commercial and industrial property.
- Amend Connecticut’s interest add-back legislation to
allow interest deductions for legitimate business purposes, as
have other states in our region.
- Provide an opt-out provision, similar to that in most other
states, from new withholding rules for nonresident partners of
partnerships.
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