Tax policy has a major impact—for good or bad—on the competitiveness of any state. A tax code can promote business activity, capital investment, and job creation—or it can be overly burdensome and encourage businesses to seek more growth-oriented tax climates in other states or countries. Changes to sales and use taxes would change Connecticut
Understanding the value of tax credits
Stability and predictability are key factors in a competitive tax system. Employers plan years in advance for expansions, investments in new equipment, development of new lines of business, and other major initiatives. If businesses can’t rely on a state to have a stable tax system—including business tax credits and exemptions for certain business inputs—they will be unable to make long-range decisions and will avoid making the kind of investments that drive prosperity and create jobs.
Proposals in the Finance Committee would introduce the kind of instability that casts serious doubts on Connecticut as a favorable place to do business. This week, CBIA looks at two types of business tax changes being proposed that would increase the tax burden on our state’s businesses at the worst time imaginable.
These changes would put our economic recovery at risk by forcing many companies to make investments elsewhere and causing job losses in Connecticut. It is clear from listening to businesspeople that the negative impact of certain changes is not theoretical, but real.