Bolinsky Votes to Eliminate Business Death Tax

HARTFORD- In an effort to end another in the line of business financial hardships in Connecticut, State Rep. Mitch Bolinsky (R-106) supported an amendment in the House of Representatives to stop a state fee companies are forced to pay if they go out of business.

Part of proposed House Bill 6356, the fee was championed by and testified for during the legislative committee process by Connecticut’s Secretary of the State, Denise Merrill.

The proposal would generate an estimated additional $400,000 annually for state coffers. House Minority Leader, Larry Cafero, introduced the amendment, pointing out the irony of taxing businesses that are dissolving and likely already experiencing financial hardships.

“We force businesses to pay a $250 fee to open their doors and keep them open, in the form of our Business Entity Tax and then we effectively whack them with a parting-shot when they close their doors,’’ Bolinsky said.

“In a state that’s facing an unfunded nine-percent increase in spending in the next biennium, should we really be trying to balance our budget $20 to $120 at a time, on the backs of closing businesses? The majority party voted down the amendment along party lines, effectively saying they’re looking forward to collecting the “business death tax”. I’d prefer we find our deficit mitigation money within the proposed $20 billion state budget and stop the nickel and diming of business and individuals to close the gap,” said Bolinsky.

Merrill said the bill would also help her office track companies that are no longer in business because many dissolving entities never notify the state of their status because of the “death tax.”