House Republican Press Release

March 11, 2008

Press Office: 860-240-8700

Rep. Miner supports repeal of punitive business entity tax

State Rep. Craig Miner today voiced his support 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.

“This tax was created years ago solely as a means for closing a gap in our state budget. Since that time, it has become a nuisance tax that harms many small businesses struggling to succeed and create jobs for Connecticut residents,” said Rep. Miner. “Repealing this tax will send a signal to the business community that we are serious about improving the business and employment climate in our state.”

Rep. Miner’s remarks came on the same day a news conference was held at the Legislative Office Building in Hartford which 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.