State Budget Hits Jobs by Hurting Small, Midsize Businesses
Small and midsize businesses are being counted on to drive job creation and economic renewal in Connecticut, but the state budget passed by the General Assembly (SB 1239) this week will hurt their ability to do just that.
“We are deeply concerned that the legislature failed to make further spending cuts that would have reduced the tax burden on Connecticut residents and businesses, and made the state more efficient and sustainable in its delivery of critical services,” said John Rathgeber, CBIA president and CEO.
Among other things, the hike in the personal income tax will directly impact small and midsize businesses. What lawmakers did not consider is that many of these companies pay their business taxes through the personal income tax.
Higher taxes will mean those employers will have far fewer resources available to grow and create jobs.
The state’s top priority is supposed to be recharging the economy and getting the more than 100,000 people who lost their jobs during the recession back to work. “We can’t do that by making it harder for businesses to compete, grow, and create jobs in the state,” said Rathgeber.
It is now more critical than ever for the state to reach an agreement with the state employee unions to achieve the $2 billion in concessions the budget depends on.
What’s more, the concessions must make significant reductions in the overall, ongoing costs of state government. They should reform Connecticut’s state employee compensation and benefits policies to bring them in line with those in the private sector.
Connecticut currently has the highest per capita debt load in the United States. It’s imperative that lawmakers trim future liabilities and make state government more efficient and sustainable for years to come.
In addition, lawmakers should have used improved revenue projections for next year to help offset the record tax increase on Connecticut residents.
The approved budget is expected to generate a significant surplus–indicating that the tax burden is too heavy.
“Connecticut needs to restore business confidence, create jobs and ensure a brighter future for everyone,” said Rathgeber. “Unfortunately, this budget doesn’t do that.”
Nor, he added, do the dozens of other anti-business bills—such as mandatory paid sick leave and captive audience proposals–still being considered by the legislature.
CBIA urges legislators to review carefully whether proposals in front of them will help or hinder the job growth that Connecticut desperately needs. If jobs are truly to be the No. 1 priority this year, lawmakers have a lot of catching up to do.
For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 or email@example.com.
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.