Connecticut’s business community will be waiting with bated breath Tuesday as the state legislature reconvenes to debate a proposed $40 million budget that could raise business taxes by $700 million.
The House is scheduled to convene at noon Tuesday, while the Senate is slated for a 3 p.m. start time. CBS Connecticut reported just before noon Tuesday that House lawmaker are expected to vote on an amended proposal today.
Lawmakers were expected to vote on a proposed budget Monday but that didn’t happen after three of Connecticut’s blue-chip companies released statements decrying proposed business tax increases.
Both Aetna, which is headquartered in Hartford, and Travelers, which has major operations here, released statements Monday hinting at the damage the approximately $700 million increase in corporate taxes could cause.
Aetna said it was “disappointed to learn that Connecticut legislators and the governor appear poised to significantly increase taxes on consumers and businesses, including approximately $700 million in business taxes over two years. We strongly believe this will undermine the competitiveness of Connecticut-based businesses and will lead to an exodus of jobs and business from the state.
Connecticut is in danger of damaging its economic future by failing to address its budget obligation in a responsible way. Such an action will result in Aetna looking to reconsider the viability of continuing major operations in the state.”
Travelers said it was “disappointed with the proposed tax increases in the budget agreement. Raising taxes again will increase the cost of living for nearly every resident and small business in the state, negatively impacting our employees and customers. Lawmakers should explore other solutions to the state’s budget to help keep Connecticut competitive and make it a desirable place to live and work.”
The statements came on the heels of General Electric’s condemnation of the proposal, which was read aloud Monday during a Finance, Revenue and Bonding Committee meeting by Rep. John Frey, R-Ridgefield:
“Retroactively raising taxes again on Connecticut’s residents, businesses and services makes businesses, including its own, and citizens seriously consider whether it makes any sense to continue to be located in this state,” GE said. “The Connecticut economy continues to struggle as other states offer more opportunities and a better environment for business growth. It is essential that Governor Malloy and legislative leaders find a more prudent and responsible path forward for Connecticut and its citizens in their current budget negotiations.”
