In her April 23 opinion piece in the Hartford Courant, union chief Lori Pelletier supports her call for higher state income and businesses taxes with a misunderstanding about a national report on state tax burdens.

It's important to understand the complete picture. That report measures taxes in a number of ways, including the ratio of business taxes to gross state product.

Connecticut Tax BurdenWhile some suggest that metric indicates below average taxes in Connecticut, the report's author warns the results “should not be interpreted to mean that Connecticut is a low-tax environment.”

The author also notes Connecticut's ratio of business taxes to GSP "is not a product of low taxes in Connecticut, but rather is due to the state’s high level of productivity, which is 25% higher than the U.S. average on a per-employee basis.”

That same report shows Connecticut’s overall state and local tax burden is 57% higher than the national average.

And Connecticut’s marginal tax rates, which significantly impact new business investments, economic growth, and job creation, are 10% higher than the US average.

Suggesting the best way to restore our economy is to make it more expensive to live, work, and do business here defies common sense.
Connecticut businesses, already struggling with high costs across many areas, are paying their fair share of taxes in this state.

The problem we all should be addressing—together—is the state's sluggish economic growth and slow post-recession jobs recovery.

Suggesting that the best way to restore Connecticut's economy is to make it more expensive to live, work, and do business here defies common sense.

Tax hikes haven't worked. That's why we're in this situation.


Joe Brennan is the president and CEO of CBIA.