Friday, January 06, 2006

State May Lower Business Taxes

Corporate Surcharge May be Eliminated

Gov. Rell and legislative leaders are turning their focus away from social and political issues to economic ones. Among the proposals floating around is the elimination of the corporate surcharge:

House Speaker James Amann told about 500 business executives in Hartford that he would consider cutting or eliminating the corporate tax surcharge - a tax hike that has irked business leaders in recent years and is expected to generate $65 million to $70 million in 2006.
...
House Republican leader Robert Ward, R-Northford, agreed that the corporate surcharge should be reduced or eliminated.
...
"Gov. Rell proposed a phase-out of the corporate tax surcharge last year, but that proposal was rejected," said Judd Everhart, Rell's spokesman. "She is taking another serious look at the corporate tax this year because she believes it is a hindrance to economic development and jobs growth for Connecticut companies. Stimulating Connecticut's economy is her top priority." (Keating)

...It is? Since when?

Actually, it isn't surprising that Rell has turned her attention to economics, which is the area in which she is currently weakest. Will a corporate tax cut help the economy? Business leaders seem to think so. It will, they say, make Connecticut a more "business friendly" place.

If a corporate tax cut will help lure businesses to Connecticut, if the government can afford to lose that money, and if other major priorities like education and transportation aren't adversely affected...then why not? Republicans want to take it further, eliminating the gift and estate tax, although the connection to business and job growth there is less clear.

Other taxes may be on the block instead of this one.

Senate President Pro Tem Donald Williams, D-Brooklyn, said lawmakers should speak with economists and business leaders before deciding which taxes to cut.

"It makes sense to have some hearings and determine what would give us the biggest bang for the buck for Connecticut's economy," Williams said. (Keating)

This is probably smart. Whatever the final outcome, moving deliberately and heeding the advice of business leaders will hopefully lead to better economic times in Connecticut.

Source

Keating, Christopher. "Corporate Tax Cuts On State's Table." Hartford Courant 6 January, 2006.

9 comments:

Anonymous said...

"Gov. Rell and legislative leaders are turning their focus away from social and political issues to economic ones" Comment: All three issues go together but our citizen legislature only thinks in one dimension. It's still the Dutch Boy approach to the latest leak in the dike.

"Senate President Pro Tem Donald Williams, D-Brooklyn, said lawmakers should speak with economists and business leaders before deciding which taxes to cut." Comment: it's not just Williams but none of these guys in the legislature, and Rell, really know what to do since their only frame of reference is the Rowland years of shooping in Hartford for bacon and bringing it home to their city or town. And the CBIA and its affiliates have no wealth of economic policy wonks. If Jack Welch ran GE like these guys run CT, GE would be making and selling hand made wax candles as its prime product.

Anonymous said...

Pardon me, but heeding the advice of business leaders supporting public utility deregulation or insurance claims or manfacturing relief hasn't provided much relief to people here.

Aldon Hynes said...

Anon1: Don't knock selling wax candles. Yankee Candle is doing pretty well in that business. :-)

That said, let me comment briefly about the drinkfest last night. One of the guys there is a software engineer who is considering running for State Rep. My wife, a molecular biologist ran for State Rep last time.

We need more people who can take an engineering or scientific approach to the problems that we face in this state.

(Obligatory plug for Mayor DeStefano :-) )

Part of the reason I like Mayor DeStefano so much is that in discussions with him about issues is that he seems to approach them from a much more scientific and engineering perspective than most politicians I've spoken with.

Anonymous said...

Destefano's campaign is history. He had a lot of nerve criticizing Rell/Moody when he has the same problems. People can see that and He's Toast!

While Jodi Rell returned 100% of the money raised at the Marco Polo event, what is the Destefano team doing?

Republicans will bring back the Bill Curry line:

John, What did you do with the money?

Rell wins big in 2006!!!!!

route 34 said...

anon 5:43,

What money are you talking about? Every article I've read has clearly stated that the event in question was not a fundraising event. Do you want him to return the coffee and pastries? While it was stupid that the campaign made (another) stupid mistake, this was not even in the same ballpark as what Lisa Moody did. In fact, it wasn't even illegal. I can see Malloy people poking fun, but Rell supporters should keep their mouths shut. You guys have enough to deal with

Quinn said...

A Corporate tax cut will help keep the businesses in CT that we already have here. It will not attract that many businesses. Outright eliminating the corporate tax would. Just look at Nevada. Of course, that itself is opening a can of worms.

ctkeith said...

Lower the rate ONLY if ALL carveouts are eliminated.

Well over 2 billion(A legislator I've spoken with says it may be double that) a year in carvouts for special interest buisnesses with big lobbiest is obcene.

If this is done right it could be revenue positive and make ALL buisnesses pay a fairer share than they do today.

Anonymous said...

"We need more people who can take an engineering or scientific approach to the problems that we face in this state." says Aldon and you see how much discussion there was on it - zippo!! If he made a comment about a fund raiser there would have been a back and forth of twenty comments. This blog oftentimes get's deeper than what goes on in the captiol building so that says something about .... Oh I gibve up.

Chris MC said...

Quinn -

Nevada? You are seriously suggesting that we look at Nevada? What, other than this microscopic focus on the business tax rate, can you compare between the two states?