The conversation I had this evening with freshman Sen. L. Scott Frantz, R-Greenwich, is likely to be the standard response members of the legislature’s GOP minority are going to be giving in the coming days when asked about the tax increases their Governor offered earlier today.
Republicans for months have argued an economic crisis is not the time to raise taxes on citizens or businesses in the state.
“Let’s focus on what she didn’t propose for a second,” Frantz began, listing Rell’s opposition to the Democrats’ efforts to hike the income tax and the estate or death tax.
“That is the best news I’ve heard in a long time,” Frantz said. “She’s standing tough, standing firm on all the important tax policy issues going forward.”
So what about Rell’s three-year, ten percent surcharge on the corporation tax? Would he vote for a budget that included that?
“I’m not for any sort of income-related tax increase, to be honest with you,” Frantz said, arguing they are deterrents to keeping residents and businesses in state.
I would not be surprised if Rell’s relatively meager tax offering – about $391 million compared to the Democrats’ $1.8 billion – gives the GOP minority an opening in the coming days to toss out a budget alternative with about $141 million worth of additional cuts to try and avoid the corporation tax surcharge.
I recently saw a report ranking CT 30th of 51 states (& Washington DC) in terms of small business attractiveness as it relates to taxes. Other factors – cost of living, etc. – would likely push CT much lower still. If CT wants to retain or attract new businesses, I’m quite sure raising corporate taxes is the wrong way to go about it. Politically speaking, it is true that it’s easier to raise corporate taxes, as corporations don’t vote. Practically speaking, it’s a great way to destroy the local economy and people’s employment prosepects.