Legislative Update on Jobs and The Economy

December 13, 2011

The jobs legislation we passed in special session on October 26th is an example of how state government functions best when Republicans and Democrats work together and focus on solutions.

The bipartisan bill provides immediate assistance to small businesses, streamlines the state’s permitting process, and helps Connecticut manufacturers keep more of their profits to reinvest in their companies.

The bill will not turn the economic tide overnight, but it will have a positive impact on job creation and job security in our state.

In the 2012 legislative session, Connecticut must reduce government spending to protect our quality of life and ensure our state’s long-term economic security.

The Bipartisan Jobs Bill

Immediate assistance for small businesses

new job creation incentives
Increased financial assistance and access to small business loans and grants
Training assistance

Making it easier to do business in Connecticut

Shorter time frames for obtaining permits for economic development projects
A new E-business Portal to make it easier for companies to access state programs and services

Critical investments to support innovation and entrepreneurship

$25 million for startup company loans, investments and matching grants in each of the next five years
Incentives to increase “angel” investments in promising high-tech and emerging technology startups

Workforce development initiatives

$20 million for manufacturing technology programs in community and technical colleges
Strategies to ensure Connecticut workers have the skill and education our businesses need
Commitment from Governor Malloy to fund critical improvements to vo-tech high schools

Reducing Government Spending, Reducing Taxes

Reducing government spending and lowering state taxes are important steps toward improving Connecticut’s business climate, creating jobs and growing our economy.

Regrettably, while most states trimmed budgets and reduced taxes in 2011, Governor Malloy and legislative Democrats increased spending and paid for it with the largest tax hike in state history!

Consider these statistics compiled by the non-partisan National Conference of State Legislatures (NCSL) for 2011:

This year states collectively cut taxes more than they increased them for the first time in 10 yrs (CT increased taxes $2 billion!)
only nine states increased taxes more than 1% (including CT, which increased taxes 15%!)
Twenty-one states cut personal income taxes, while only six states (including CT) raised them
Twenty states cut corporate taxes, while only eight states (including CT) raised them
Twelve states decreased general sales taxes, while only seven states (including CT) raised them
Fifteen states raised hospital taxes (including CT) • Just three states raised alcohol taxes (including CT)
Just two states raised gas taxes (including CT)

Making Connecticut More Business Friendly

The bipartisan jobs bill passed in special session was a good first step toward helping small businesses, manufacturers and the unemployed recover from the recession and get back on their feet. In the 2012 session, the legislature will be challenged to make additional policy reforms to improve Connecticut’s business climate. To that end, I will continue to advocate the following pro-growth reforms:

Less government spending and lower taxes
Full repeal of the $250 Business Entity Tax
Repeal of the corporate tax surcharge
Repeal of the costly paid sick leave mandate (CT is the only state to have this law)
More significant regulatory and permitting reform
Privatization of some state services when the private sector can do a better job at a lower cost
Strategic investments in transportation infrastructure
A reduction in insurance mandates, which contribute to unreasonably high health care costs