March 6, 2008

DILLON SEEKS FAIRNESS IN BUSINESS TAX RELIEF
Multi-million dollar corporations pay less in taxes than area healthcare providers

Representative Patricia Dillon (D-New Haven) Wednesday urged leaders of the business community, during Connecticut Business Day at the State Capitol complex in Hartford, to consider a fair solution to their requested repeal of the Business Entity Tax. Rep. Dillon told business leaders at the event, co-sponsored by Connecticut Business & Industry Association and the Connecticut Association of Chambers of Commerce, that discussions on the elimination of the $250 annual levy must focus on an equitable solution.

Rep. Dillon, citing a recent study by Connecticut Voices for Children, said, "Because of various loopholes, many multi-million dollar corporations don't pay a dime in state taxes other than this $250. Meanwhile we have health practitioners serving the poor at our local clinics paying $450 in licensure fees to practice medicine. It doesn't strike me as fair."

The Business Entity Tax generates approximately $35 million to the state in annual revenue. According to Connecticut Voices for Children, nearly one-fifth of the state's 100 largest companies paid the business entity tax, rather than the corporate business tax. About half of all states impose an entity-level tax and many have higher rates than Connecticut.

"When the Business Entity Tax repeal is considered by the Finance Committee, I would simply urge an equitable bill that looks at the full spectrum of taxes and license fees levied by the state," Rep. Dillon said.

The full Connecticut Voices for Children report on the Business Entity Tax can be found at www.ctkidslink.org/pub_detail_384.html

Representative Dillon was first elected to the General Assembly in 1984. She is an Assistant Majority Leader and serves on the Appropriations, Higher Education and Judiciary committees.