Rep. DebraLee Hovey today co-sponsored legislation that would immediately stimulate Connecticut’s long-suffering job market by repealing the state’s Business Entity Tax and offering tax credits to companies that create full-time positions.
The proposal would also require that a Jobs Impact Statements accompany bills and amendments—a move addressing the business community’s complaint that the legislature habitually passes bills without considering how they affect employers.
Some Democrats spoke in favor of the proposal offered by Rep. Hovey and her Republican colleagues or praised its content, yet the majority ultimately voted against it.
“It’s pretty interesting to me that when there’s a chance to pass legislation that hurts the business community’s ability to create jobs the legislature acts quickly,” said Rep. Hovey. “Yet, when we look to pass legislation to help create jobs in a state with 9% unemployment, the majority feels we need to study it for a year and a half. The time to act is now. We have one week left of this session and time is running out.”
Hovey and Republicans attached their pro-jobs proposal to a Democrat plan to create a commission to study how the state can generate more revenue—in other words, tax residents and businesses.
The Republican proposal was rejected 105-38.
The jobs-creation proposal included:
- Repeal of the Business Entity Tax on all businesses.
- Creates Small business revolving loan fund (direct loans only)–$25 million cap on the program.
- Job Creation Tax Credit Program—creates a tax credit for employers who employ 100 employees or less. Employers may receive a $4,800/per employee for every hire off of unemployment.
- Requires that Jobs Impact Statements accompany bills and amendments
- Create DECD ombudsman to help streamlining the permitting process for businesses.