House
Republican Press Release
March 11,
2008
Press
Office: 860-240-8700
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 said.
“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. in Waterbury.
“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
Noujaim said.
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 Noujaim
said.
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.
