For Immediate Release
Feb. 6, 2008

 

BUSINESS COMMUNITY PRAISES GOVERNOR'S PLAN TO CONTROL SPENDING
AND ELIMINATE THE BUSINESS ENTITY TAX

 

The Connecticut Business & Industry Association (CBIA) is encouraged that Governor Rell is making responsible state spending a priority and hopes lawmakers will take legislative action that will improve the state's economy and make Connecticut a better place to live and work.

"We are pleased that the Governor recognizes the precarious economic situation facing the nation and Connecticut, and is making every effort to control the state budget and keep expenditures under the state spending cap,” said John R. Rathgeber, CBIA president and CEO. “We hope that legislators will follow her lead by controlling spending and acting in a fiscally responsible manner that will help strengthen our economy.”

CBIA supports the Governor's and other public officials' plans to eliminate the business entity tax. That tax directly affects small businesses, which create many of the state's new jobs.

"Eliminating the business entity tax is a good first step toward developing a long-range tax strategy — one that will help small businesses and encourage more business startups in Connecticut, fostering the kind of economic development that allows companies in the state to compete globally and create jobs locally,” said Joseph F. Brennan, senior vice president of public policy.

CBIA also supports the Governor's plan for property tax reform as long as it addresses cost drivers and puts spending controls in place to help municipalities better manage their finances. The business community also supports Gov. Rell's efforts to encourage energy conservation, improve the environment and reduce greenhouse gas emissions.

Connecticut has the fifth-highest overall business costs in the U.S. Businesses and people in Connecticut agree that reducing these costs and helping Connecticut 's economy grow is key to the state's future.

CBIA is asking legislators to focus on 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 Connecticut businesses remain competitive in today's uncertain economic environment should be a top priority. 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,” said Rathgeber.

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For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com.

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