Malloy proposes budget changes to address concerns of business community

June 13, 2015

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Gov. Dannel P. Malloy and Lt. Gov. Nancy Wyman (Christine Stuart photo)

HARTFORD, Conn. – Before jetting off to Europe for a trade show, Gov. Dannel P. Malloy proposed changes Friday to the tax package that narrowly won approval from the legislature last week despite objections from the state’s business community.

Outside his Capitol office, Malloy announced that he wants to keep the computer data processing tax at 1 percent, delay unitary reporting until January 1, 2016, eliminate the sales tax on car washes and parking, cap the tax on Internet downloads at 1 percent, and cap the amount of credits companies can use to offset their tax burden at 55 percent.

The business community — including large, iconic companies like GE, Aetna, and Travelers — complained loudly about the computer processing tax and the unitary reporting requirement.

The changes will mean the state will collect about $223.5 million less in revenue over two years, or $96.5 million in the first year and $127 million in the second year of the budget.

See the complete story at CT News Junkie.

Comments

One response to “Malloy proposes budget changes to address concerns of business community”

John Hamlin

June 13, 2015

The state needs to think about tax on business in terns of the tax burden that other states impose upon business, not in terms of the needs of our public employees or the sense of outrage citizens feel against the one percent. And on the basis of its tax and regulatory burden, Connecticut simply can’t compete with others states (not to mention foreign countries) to attract or retain business. Period. The end result, a decline in business, population and tax revenue. Eventually, if this trend continues, the only people left in state will be the public employee unions and their leadership and the politicians in their hip pockets. And public pensions and compensation don’t necessarily survive bankruptcy.

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