How State Lawmakers Can Invest in Job Growth

Facing new tax increases and other rising costs, Connecticut businesses are finding it harder to create jobs and reinvest in their facilities and workforces.
Most small and midsize businesses use net profits to invest in and improve their companies. But steeper costs mean slimmer profit margins margins–and dimmer prospects for growth and recovery.
Lawmakers could still change that picture. Adopting a Manufacturing Reinvestment Account program that would allow small and midsize businesses to set aside money for future purchases in a tax-free bank account would certainly help.
Data shows that small businesses drive America’s job growth. They tend to grow the fastest because they typically reinvest large portions of annual profits to purchase new machinery, equipment and facilities, or to retrain or expand their workforce.
Freeing up money to help small businesses achieve those goals could result in dramatic economic gains.
Especially now, Connecticut needs to do whatever it can to help businesses grow and create jobs in the state. Smaller businesses can be the engine of economic growth we need, but lawmakers will have to take some significant steps to make that happen.
Making it easier for manufacturers to reinvest in their businesses so that they can expand their operations and workforces makes long-term economic sense for the state.