Believe it or not, our current state government is both a burden and obstacle to the growth of small businesses in Connecticut. Just ask any Connecticut business owner about the oppressive over regulation and specific taxes that they must cope with each and every day.
These issues MUST be dealt with later this month at the special legislative session on job creation to minimize the intrusive policies that discourage businesses from setting up shop in Connecticut.
To ensure that we are prepared to talk about common sense solutions, House Minority Leader Larry Cafero and Senate Minority Leader John McKinney have met with the Governor and his staff to offer a list of recommendations which we support. These proposals reflect a bipartisan approach to addressing the state’s grim business climate and bringing small business growth back to Connecticut.
The growth within the small manufacturing sector of Connecticut has proven to be an ongoing struggle over the past few decades. Ironically, Connecticut is also one of the most highly concentrated manufacturing states in the nation. The Connecticut Economy recently found that small manufacturers are approximately 28 percent more numerous in Connecticut than anywhere else in the nation, yet we still appear to be failing to meet the standards that are necessary for growth.
The national economic recession has certainly made it difficult for existing small business to prosper, but even during better times, like between 1996 and 2006, Connecticut lost 2.2 percent of its small businesses while the average state in the country saw a 10 percent increase. So despite a decade of economic prosperity, Connecticut had a true challenge sustaining business growth within its own borders.
So what is to blame for Connecticut’s ongoing lack of development in the private sector?
Small and large business employers alike are quick to point their fingers at Connecticut’s strict regulations and high tax rates as the conspirators standing in the way of industrial development. Small businesses have a tendency to be much more affected by these heavy regulation and numerous taxes simply because of their smaller wallets and smaller workforces to help navigate through tedious and ever-changing red tape regulations.
We have laid out a clear job creation and development plan to start to repair how the state deals with businesses.
These recommendations include providing general tax relief for small businesses by not taxing 30 percent of a company’s income as long as that 30 percent is reinvested in the company’s inventory, capital improvements, or company expansion.
Also, expanding the new job creation tax credit by permitting greater eligibility criteria would afford a break to businesses. Further expansion of the tax credit will make any business eligible to receive tax credits if it creates one new job.
Other proposals include improvements to current pro-business programs that are already in place in Connecticut. Eliminating the 3.5 percent withdrawal tax on the Manufacturer’s Reinvestment Account would enhance the program by opening it up to all small manufacturers.
There is no question that these are tough times. With a 9% unemployment rate and fledgling record on jobs over the last 20 years, it’s time for the state government to make the necessary changes and “get down to business” about jobs.
State Representative Livvy R. Floren, 149th District
State Representative Lile R. Gibbons, 150th District
State Representative Fred Camillo, 151st District
State Representative Michael L. Molgano, 144th District
EDITOR'S NOTE: This is an opinion-editorial article submitted to us by the listed authors and does not represent the views and opinion of Canaiden LLC.
