Government Affairs REPORT

In Commerce Committee:
Proposals to help state grow economy

(Feb. 24, 2006) This week, lawmakers in the Commerce Committee discussed proposals designed to boost Connecticut’s economy and job creation — addressing the top concerns of people in the state, according to a recent Hartford Courant/University of Connecticut poll.

CBIA testified this week on SB-1, a vehicle meant to enhance the state’s business climate through a “jobs for the 21st century” plan for economic development.

Among other things, SB-1 would seek to help by eliminating the tax on manufacturing machinery and equipment, developing a plan to address high health care costs; improving the state’s transportation infrastructure; and by strengthening ties between higher education, the state’s technology sector and overall business community.

However, details on how to achieve those goals would be achieved were not yet available.

In testifying on these measures, CBIA pointed to its “Action Plan for Economic Growth & Job Creation in Connecticut,” which calls for eliminating the property tax on manufacturing machinery and equipment and ending the corporate income tax surcharge. What’s more the CBIA Action Plan urges lawmakers to say “no” to such measures as the “pay or play” health care tax on employers; and “yes” to the plan of Connecticut’s business community to reduce health care costs and increase quality and access.

And CBIA is encouraging legislators to avoid negative workplace measures that impeded employers’ ability to communicate with their employees.

Also before the Commerce Committee this week, CBIA testified in favor of SB-89, a measure meant to help the state keep — and attract more — jobs by using a new tax incentive program.

The proposal, called the “Business Employment Incentive Program to Generate Resources and Opportunities in the Workplace (GROW),” provides a structured tax increment incentive program in which the state and employers share in the tax revenues.
Gov. Rell has made a similar proposal, as contained in SB-51.

Connecticut has great potential for economic growth, but by many measures is falling short. CBIA encourages lawmakers to enact legislation that will demonstrate that Connecticut wants businesses to invest, grow and create jobs here.

For more information, contact CBIA’s Bonnie Stewart at 860-244-1900 or stewartb@cbia.com.