Poll: Residents oppose tax increases that will harm employers, cost jobs

(May 8, 2009) With Connecticut families paying a high price for the recession through lost jobs and wage cuts, residents are worried that significant tax increases on businesses could lead to an even higher cost—more job losses in the state—according to results from a new Zogby International survey.

Residents want state lawmakers to avoid harmful tax increases and focus instead on improving the economy, saving jobs and cutting government spending to help close the state budget gap. Those opinions were expressed by a majority of Democrats, Republicans and Independents alike, says Zogby.

Because more than 58,000 Connecticut residents have already lost their jobs, holding on to jobs or finding new ones understandably tops residents’ list of concerns. And people are connecting the dots between proposed business-tax increases and prospects for future employment.

The vast majority of respondents (82%) said significant tax increases on employers, as contained in a Finance Committee proposal (SB-932), will lead to further job losses in the state.

“Lawmakers must understand, as do the people of Connecticut, that the actions they take at the Capitol affect employers and their employees,” said John Rathgeber, CBIA president and CEO.

“The late Massachusetts Senator Paul Tsongas said it best,” added Rathgeber. “You can’t be pro-jobs and anti-business.”

Concerns about spending
State spending is also a big concern with Connecticut residents. Nearly two-thirds said they are coping with the tough economy by cutting back on major household purchases (65%), cutting back on all purchases (50%) and putting off retirement (23%). They want to see lawmakers follow their lead by reducing the size and scope of state government.

Nearly half (47%) of respondents said lawmakers should focus on additional cuts in state spending to help balance the budget. One-third believed the solution is a combination of state spending cuts and tax increases.

Two-thirds of respondents specifically opposed the Appropriations Committee’s $38.2 billion spending proposal (HB-6365) that would require raising taxes by $1.6 billion a year over the next two years.

Bipartisan opposition
Politics had little to do with opposition to the spending bill: Democrats opposed the measure by a wide (23%) margin, and 70% of respondents from union households also were against the bill. Republicans and Independents overwhelmingly opposed it, too.

Two-thirds say state government should save money by concentrating on its core functions, such as education and public safety, and an overwhelming majority of respondents (96%) believe it is important for state government to focus on retaining jobs and strengthening the economy.

Only 28% of respondents said state government should expand its operations by providing retirement programs and health insurance benefits, as currently proposed in the legislature.

It’s clear that employees and employers are facing some of the most difficult challenges in recent history,” said Rathgeber, adding that Connecticut needs a pro-jobs, pro-growth strategy that will help residents and businesses survive the recession and thrive in the recovery.

“Lawmakers must work together to make our state government smaller, less expensive and more effective.”

For more information about the survey, contact CBIA’s Pete Gioia at 860-244-1945 or pete.gioia@cbia.com

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