'Disappointment' Over Tax Extensions, Calls for Broader Spending Cuts

Connecticut's largest business organization today expressed concern that Governor Malloy's proposed budget extends a number of taxes that were due to expire and called for broader cuts in state spending.

John R. Rathgeber, president and CEO of the Connecticut Business & Industry Association, said businesses were disappointed that the budget allows the corporate tax surcharge, electric generation tax, and insurance premium tax credit limit to survive a June 30 sunset date.

"Connecticut must make its tax system more competitive if we're going to attract private investment, allow businesses to grow, and get people back to work," he said today.

Rathgeber urged the General Assembly to enact further spending cuts, taking immediate steps toward resolving the current budget deficit and addressing the state's long term fiscal obligations.

"We need to aggressively pursue policies that will grow the state's economy and close out what has become an endless cycle of budget deficits," he said.

"There's no better economic development tool available today than making the changes needed to control spending, demonstrate fiscal discipline, and make government more efficient."

Last month, CBIA released a report revealing that state government spending jumped 153% since 1992 to more than $20 billion this fiscal year, outpacing population growth, inflation, and median household income.

That report found that while spending on state employee retiree benefits, Medicaid, and corrections grew dramatically, critical priority areas such as education and infrastructure had much lower growth rates over the same period of time.

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CBIA is Connecticut's largest business organization, with 10,000 member companies. For more information, please contact Joe Budd (860.244.1951; joe.budd@cbia.com) or visit the CBIA Newsroom.