House Republican Press Release

February 7, 2006

Press Office: 860-240-8700

Rep. Hovey: Cut Corporate Surcharge; Oppose Expensive Mandates on Business to Stimulate Economy, Create Jobs

With Connecticut’s economy growing at a sluggish pace, the state legislature must act decisively during the 2006 session to pass legislation to make the state more business friendly and spur the creation of new jobs, state Representative DebraLee Hovey, R-112^th District, said today.

“Our state’s economy has been sluggish for the past three years. If we are serious about promoting economic growth and creating jobs, it is absolutely essential that we pass legislation this year that will make Connecticut more business-friendly and encourage existing firms to expand and provide incentives that will induce out-of-state companies to move here,” Representative Hovey said.

“Repeal of the 20 percent corporate surcharge is especially important. It would save companies about $45 million a year. In addition, eliminating the $250 minimum business tax would save small businesses around Connecticut almost $28 million. The saving would give employers additional resources to invest in expanding their operations in Connecticut, which in turn will generate new jobs.” Representative Hovey said.

Other initiatives Representative Hovey said she will support would:

· Require bills or proposed regulations to include job impact statements that would estimate the number of jobs that would be created or lost as a result of a measure becoming law or a regulation taking effect.

· Allow businesses to offer flexible and affordable health insurance plans that meet the needs of their employees while enabling them to compete effectively with out-of-state companies that provide similar goods and services.

· Roll back utility rate taxes on corporations by 42 percent to reduce the overall cost of doing business in the state.

· Put tuition breaks in place for students majoring in science, math, engineering and technology to help create a new generation of workers in related careers.

Representative Hovey said she also would oppose a move to require employers to provide expensive health insurance plans similar to those enjoyed by state government employees.