House Republican Press Release

March 5, 2007

Press Office: 860-240-8700

REPRESENTATIVE SCRIBNER BACKS TAX RELIEF FOR CONSTITUENTS, BUSINESSES

Proposal Would Eliminate Minimum Entity Tax For More Than 1,300 Businesses In Brookfield, Bethel 

HARTFORD- On Thursday, March 1, State Representative David A. Scribner (R-Brookfield, Bethel) joined fellow House Republican leaders in promoting legislation that would exempt retirees’ pension benefits from the state income tax in order to eliminate tax payer flight to states where this relief is guaranteed. Connecticut is one of four states that fully tax all pensions as earned income, and one of only five states that provides no relief for veterans. 

With energy and healthcare costs on the rise, House Republicans believe it is more important than ever to take prompt action in order to help residents on fixed incomes.  House Republicans have proposed House Bill 5541 which would eliminate the personal income tax on pensions and Social Security for individuals 62 years of age or older.  This bill is designed to help retain more Connecticut residents and reduce the incentive for leaving in order to sustain a more reasonable tax break.

“The fact that we are only one of four states that fully tax a person’s pension is further proof of over-taxation,” said Rep Scribner. “Connecticut continues to rate last in the nation regarding tax freedom day—the date in the spring when you begin earning money beyond what you will be taxed for the year. Our elderly residents have paid into this system for decades and clearly deserve a break in their golden years.”

This issue is part of an overall larger effort by House Republicans to provide tax relief incentives for not only seniors, but for businesses as well. House Bill 5610 would eliminate the state’s $250 minimum business entity tax. According to the Department of Revenue Services (DRS), more than 760 businesses in Brookfield and more than 600 businesses in Bethel pay this tax. Under the current tax structure, ‘Mom and Pop’ stores pay the same tax for opening their doors---and repay it annually--as huge corporations.

“We have more than 1,000 small businesses in Brookfield and Bethel who are taxed—and taxed again annually simply for setting up shop,” said Rep. Scribner. “By eliminating this tax, we can show these entrepreneurs that we appreciate their efforts in creating jobs and recognize the key role they play in our economy.”