The state’s largest business lobby Tuesday voiced reserved support for lawmaker’s revised budget agreement that rolled back $178 million in tax increases that were approved by the legislature just a few weeks earlier.
“As originally adopted by the General Assembly, the budget hurt companies’ ability to compete,” said Joe Brennan, president and CEO of the Connecticut Business & Industry Association. “By reopening the budget and making modifications to tax increases, lawmakers have begun undoing some of the damage.”
On Monday, the House and Senate held a special session and approved a revised two-year, $40 billion budget.
Brennan said that even in its revised state, the spending plan still increases taxes by about $1.3 billion, including higher levies on employers, and reductions in the value of tax credits and operating loss provisions. Lawmakers rolled back tax hikes on data processing and web development services and delayed for a year the shift to unitary reporting for corporations.
“Make no mistake about it, taken as a whole, this budget does not help Connecticut’s overall competitiveness,” he said. “Policymakers now must aggressively follow up on the special session with structural reforms that more efficiently deliver services, reduce long-term costs, and stabilize our economy to benefit everyone who lives in Connecticut.”
During the special budget session, lawmakers also approved a new economic competitiveness commission to help develop policies promoting economic growth, Brennan said.
