A recent statement by my opponent touted the low cost of doing business in Connecticut and how little of our tax increases were shared by our businesses. But he references a section of a UCONN publication regarding only 10% of Connecticuts 1.6 million jobs, most of which are in a few highly specialized manufacturers that often use inexpensive non-US parts. CBIA states that in reality we have steadily lost manufacturing jobs because Connecticut is cost-prohibitive (53,900 from 1994-2003 and 20,000 in the last two years). Ignoring ninety percent of the states overall economy is misleading.
National publications and firms that help locate businesses cite Connecticut as one of the least-friendly and most costly states to do business. As for not paying their fair share, consider that over 75 % of our business sector is comprised of LLCs, LLPs or LPs. Those businesses are taxed as personal income not reflected in the corporation tax. They also pay business entity, sales, real estate, property, equipment, succession, vehicles, fuel, tourism, energy, admission, dry cleaning, solid waste, unemployment and workers comp taxes. They pay occupation and other fees that were doubled in the last budget that I vehemently opposed. That budget increased the tax on most businesses by a whopping 30% and added a 10% surcharge on all large profitable businesses for the next 3 years, prompting US News & World Report to list our state in the top 4 where taxes were increasing the most. And if you think that tax policy does not make a difference, ask the Danbury Mall where 40% of their income comes from New Yorkers looking to save two percent on their sales tax. UCONN Center for Economic Analysis recently stated that “Unless the state adopts polices to change this progressively deteriorating pattern, a jobs recovery many never arrive.”