March 6, 2008
BUSINESS LOBBY OUT TO END ENTITY TAX
By Angela Carter, Register Staff
HARTFORD — More than 100 business leaders from around the state converged at the Legislative Office Building Wednesday to lobby their General Assembly representatives for businessfriendly policies — starting with the elimination of the annual $250 business entity tax.
"Who pays for it? What do you get for it? Nothing," state Business Advocate Rob Simmons told a capacity crowd. "Tell the legislators to get this tax off our backs," he said to rousing applause.
The event, Connecticut Business Day, was co-sponsored by the Connecticut Business & Industry Association and the Connecticut Association of Chambers of Commerce executives.
Gov. M. Jodi Rell, Secretary of the State Susan Bysiewicz and bipartisan legislators have called for ending the levy this year. It is imposed annually to foreign and domestic limited-liability companies, along with certain other partnerships and corporations required to register with the Secretary of the State's office.
As Rell addressed the group, she said repealing the flat tax would mean a $35 million loss to state coffers, but it would allow small businesses to cover other expenses, such as marketing.
The governor called for fiscal restraint in the current economic downturn, as characterized by some economists, and voiced her objection to talk in the General Assembly of giving state rebates to about 1 million low- and middle-class residents, if the state surplus is at least $100 million.
House Republican Leader Larry Cafero Jr., who represents Norwalk, opposed the tax and also bills being vetted this session that would expand workers' compensation benefits and institute paid sick leave mandates.
When business representatives met with lawmakers in small groups,stateRep.PatriciaWidlitz, D-Guilford, said that rather than repeal the tax, another approach might be to make it effective at a certain company income level and have a sliding scale.
State Rep. Patricia Dillon, DNew Haven, said talk of repealing the business entity tax has prompted calls from physicians and other constituents who pay licensing fees and want relief because they consider those to be taxes as well.