HARTFORD- In an effort to help businesses and employees struggling during this COVID pandemic, State Rep-Elect Greg Howard (R-43) joined the House Republican Caucus calling on the General Assembly to act to provide immediate economic relief.

“Connecticut businesses need a life-line right now. COVID has wrecked-havoc on our state’s economy and we need to act quick to provide some relief, said Rep-Elect Howard. “Again, I pledge to work in a bipartisan fashion to make sure employers get the much-needed assistance they need to survive and thrive during COVID and after the virus.”

“Anything we can do to help out Southeastern CT will be vital for the region. With the reliance on tourism in our part of the state have been hit hard with COVID travel restrictions and business closures, and in the absence of any new federal response, we need state government to provide some sort of economic relief,” added Rep-Elect Howard.

Rep. Howard joined his colleagues calling for the: 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.

Details of the actions are below:

  • Unemployment Insurance Trust Fund. Our unemployment insurance trust fund has run out of money and the state is anticipated to borrow about $800 million by the end of the year from the federal government to replenish these funds and keep paying unemployment benefits. Interest on these loans begins to accrue January 1 2021. If the legislature takes no action, the state will have no choice but to raise unemployment taxes on employers in order to pay off the federal loans and interest. Rep-Elect Howard and House Republicans are asking the governor to use a portion of current or future federal COVID relief funds to replenish the UI Fund, similar to the approach taken by the state of South Carolina.
  • Delay Business Property Tax Payments. Rep-Elect Howard along with House Republicans call for the second half of business personal property taxes that are due January 1, 2021 to be delayed by 90 days and be due April 1, 2021 instead. The Governor earlier this year issued Executive Order 7s that provided an additional 90 days to pay property taxes that were due July 1st of 2020. This is a similar request for the January portion of property taxes and would apply to businesses only.
  • Call for a Temporary Suspension of the .5% payroll tax PFMLA. Rep-Elect Howard along with House Republicans call for a temporary suspension of the 0.5% payroll tax going into effect on January 1, 2021 to pay for a state operated paid family medical leave plan.  The caucus believes that the fund’s solvency needs to be examined by an independent auditor and collecting a new tax on employees during the midst of a pandemic is the wrong approach. When CT’s personal income growth has grown by less than 1% over the last 12 years prior to the pandemic, and the unemployment rate is more than double than this time last year, now is not the time to add another tax onto the backs of our workers to fund a new state program that won’t be paying benefits until over a year from now. This new tax will only make CT’s economic recovery that much more difficult.