Contact: Adam Joseph
March 30, 2010
Hartford: Senate President Donald E. Williams, Jr. (D-Brooklyn) joined Rep. Susan Johnson (D-Windham), Willimantic Mayor Ernest Eldridge, Executive Director of the Windham Region Chamber Roger Adams, Frank Alvarado of the Spanish American Merchants Association (SAMA), and small business owners at a news conference to highlight how Senate Bill 1 could cut taxes for 149 small businesses in Windham.
Senate Bill 1 exempts certain small ‘mom and pop’ businesses with annual net incomes of $50,000 or less from the $250 business entity tax for two years. The Office of Fiscal Analysis (OFA) estimates that as many as 149 businesses in Windham qualify for the tax cut. For more details on Senate Bill 1 and a full list of how many businesses in each Connecticut town qualify for a tax cut go to: www.senatedems.ct.gov/GrowJobs
“Windham has been hit hard by the recession,” said Senator Williams. “The unemployment rate in Windham tops 11 percent and too many businesses are having a difficult time making ends meet. Senate Bill 1 offers targeted tax relief to small ‘mom and pop’ businesses and expands access to credit for other companies. We must get Connecticut working again and our jobs bill will help do that.”
Rep. Johnson said, “During these difficult economic times the Connecticut legislature has worked hard to find innovative solutions to address our severe financial losses. That is why I cosponsored SB1.”
Business leaders from across Connecticut testified in favor of Senate Bill 1 during a public hearing earlier this month. Mr. Adams, of the Windham Region Chamber, said, “We are pleased to support the proposal for a two year suspension of the business entity tax. It is a fee viewed almost universally as an unjustifiable penalty on every business of every size.”
“This proposal puts more money into the pockets of small businesses,” said Mr. Alvarado. “Two-hundred and fifty dollars may not seem like a lot of money but it can help pay the gas or light bill.”
To offset the loss of revenue associated with the tax cut, Senate Bill 1 imposes a temporary surcharge on bonuses of $1 million or more paid by companies that received Troubled Asset Relief Program (TARP) bailout funds. The surcharge of 8.97 percent is in lieu of regular state income tax on the bonuses. Recently Attorney General Richard Blumenthal issued a formal opinion rebutting claims that the surcharge might be unconstitutional.
“The multi-billion dollar TARP bailout helped save the big banks and now they’re back to handing out multi-billion dollar bonuses to their executives,” said Senator Williams. “Our plan includes a temporary surcharge on million-dollar bank bonuses—with all the revenue going directly to small businesses.”
“I’m not just the mayor, I’m a small business owner,” said Mayor Eldridge. “I understand how businesses are struggling. We’d like to see Main Street filled with businesses again and this bill would help.”
In addition to suspending the business entity tax, SB 1 establishes a program to provide loans and loan guarantees to companies with fewer than 50 employees, and authorizes up to $20 million in state general obligation bonding to fund the program.
(for both senators)
Legislative Office Building
Hartford, CT 06106-1591
See more news releases by Senator Williams.
See more news releases by Senator Looney.