“The Finance Committee’s $1 billion-plus tax hike package is precisely the wrong prescription for Connecticut’s fragile economic recovery,” CBIA president and CEO Chris DiPentima said today.
“Small businesses will bear the brunt of many of these tax increases and it defies sensible logic that there are lawmakers who think further burdening struggling smaller employers is a positive for the state.
“That’s the same illogical thinking that caused Connecticut to be near the bottom of the nation in recovery from the 2008-2009 recession—those who do not learn from history are doomed to repeat it.
“These tax hikes erode the opportunities the state has to rebound from the pandemic stronger and better than before, to change the state’s narrative, and reimagine a Connecticut that can compete regionally, nationally, and globally.
“New York has already hiked taxes on its residents and Massachusetts looks set to follow. Why would we take away that competitive advantage, particularly when we have a healthy rainy day fund and significant federal relief funds?
“The irony is this—given the historically high balance of the state’s rainy day fund, this fiscal year’s budget surplus, and significant federal relief funds, Connecticut does not need tax hikes, as the governor and independent analysts have noted.
“We are also concerned with the number of gimmicks in this bill that are designed to circumvent the state’s spending cap—that lack of fiscal discipline is what has fed a pattern of budget deficits and tax hikes over the last 10 years.
“We applaud those Republicans and Democrats who opposed the bill in committee and call on the administration and the legislature to work together to find solutions, not further erode our economic competitiveness.”
CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please contact Joe Budd (860.244.1951).