One of Repeal Bills Supported by Rep. Noujaim, Coalition,
Passes Commerce Committee Today
State Representative Selim Noujaim, other legislators, and
Connecticut business leaders today called for the full repeal
of the $250 Business Entity Tax, a nuisance levy that
businesses have opposed for several years since it was first put in place in 2002 to close a
revenue gap in the state budget.
The state legislature adopted the tax in 2002 during a downturn in the state’s economy. The
tax was intended as a temporary fix to raise about $30 million to offset a billion dollar plus
deficit. Six years later, the tax remains on the books. The tax currently raises about $35
million per year and affects about 120,000 Connecticut businesses, Representative Noujaim
“Connecticut’s small businesses are extremely vulnerable to market forces and increases in
the cost of living. They must struggle daily under these conditions to meet both customer
demand and employee payrolls. The business entity tax sends the wrong message to
Connecticut’s small businesses. If the bills [we are supporting pass the state legislature], they
will create more jobs, encourage more business investment, and stimulate the economy”
Representative Noujaim said.
“Over the past ten years my company has lost 17 customers (17 companies), who we
supplied with products and services. They either moved out of Connecticut or ceased
operations all together. Combined, these manufacturing firms employed more than 5,000
highly skilled, highly paid, and highly qualified people. Imagine the impact such losses have
on their families and on our economy,” said Representative Noujaim, who is the executive
vice-president of the family-founded and operated Noujaim Tool Company, Inc.
“With all the agony caused by a state that is so unfriendly to business, we have the
opportunity to pass legislation that will rectify a practice that certainly serves no
significant purpose other than to chase companies away from our state,” Representative
The full repeal of the business entity tax will “send Connecticut’s Small Businesses the
message, loud and clear, that they are valued and we want them here,” Representative
Representative Noujaim’s remarks came at a news conference today at the Legislative Office
Building in Hartford that was organized by the Small Business Coalition, which includes
members of the National Federation of Independent Business (NFIB), Chambers of
Commerce and Trade Associations. The Small Business Coalition supports full repeal of the
business entity tax for Limited Liability Companies, Limited Liability Partnerships and other
pass through entities.
Representative Noujaim said the Small Business Association’s goal of full repeal of the
business entity tax would succeed this year if the General Assembly passes two measures,
Senate Bills 400 and 28. Senate Bill 400 (An Act Eliminating the Business Entity Tax) was
approved today by the state legislature’s Commerce Committee.