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Rep. Cheeseman Joins House Republican Call to Help Struggling Businesses

Posted on December 4, 2020

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HARTFORD – State Representative Holly Cheeseman (R-37) joined House Republican Leader-elect Vincent Candelora (R-86) on Thursday to call for additional efforts to help struggling businesses and employees.

House Republicans outlined actions that need immediate attention, including: shoring up the state’s Unemployment Compensation Trust Fund, allowing businesses more time to pay the second half of their personal property taxes, and delaying the implementation of the paid family leave payroll tax that will see the state take more money from the paychecks of cash-strapped employees.

“Businesses in East Lyme and Salem are struggling to cope with the effects of the pandemic and related lock down measures,” said Rep. Cheeseman. “We can’t wait any longer to create a forward-looking vision for economic recovery. There are steps we can take now that will provide more stability for struggling employers going forward.”

The state’s unemployment compensation trust, funded by businesses, ran out of money in August. Connecticut’s Department of Labor has reported more than 1 million applications for unemployment benefits since March, and current weekly filers total 188,000. It’s anticipated that by December’s end Connecticut will have borrowed more than $800 million from the federal government to pay benefits. Employers, not state government, will have to pay back those loans—with interest that begins to accrue in the new year. House Republicans on Wednesday wrote to the state’s Congressional delegation urging an extension of the interest-free period.

House Republicans also said the governor should delay by 90 days the deadline by which businesses pay their personal property taxes, shifting it to April 1st from January 1st. The request is in line with a previous executive order (7s), and businesses would have to apply to the municipality for a deferral.

“Connecticut residents can’t afford another slow decade long recovery with anemic job growth and slow income growth. Increased unemployment taxes slowed our recovery from the last recession. Shoring up the fund will directly help employers and employees,” noted Rep. Cheeseman.

The legislators also called for a delay in implementing a new 0.5% payroll tax taking effect on January 1st. The new tax will go towards funding a state-run paid family and medical leave program that won’t begin paying out benefits until 2022 at the earliest.

“Personal incomes in our state have grown by less than one percent over the past twelve years. Delaying the new payroll tax will provide immediate relief for struggling workers. Considering that benefits from this program are over a year away, we should consider providing relief now during the pandemic emergency by delaying the tax.”

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