House Republican Urge Immediate Action to Help CT Businesses/Nonprofits
Connecticut’s small businesses and nonprofits are struggling, and they need their state government to take immediate action. Today, I joined House Republican Leader-Elect Vincent Candelora and other House Republican members outside the State Capitol for a press conference to propose how we can help Connecticut’s business and nonprofit communities during these challenging times.
Countless businesses and nonprofits have been forced to close and an alarming number of residents are out of work as a direct result of the pandemic as well as the governor’s executive orders. With the Democrats’ payroll tax expected to take effect on the first of the year, Republicans are calling for the majority party and Governor Lamont to temporarily suspend this new tax so employers and employees have a chance to recover.
Below is a summary of our proposals.
1) Replenish the 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.
The House Republican Caucus is calling for:
- A portion of current or future federal COVID dollars be considered and utilized to replenish the UIC Trust Fund and reduce the future tax burden on businesses. South Carolina has taken this approach and are utilizing federal COVID dollars to backfill their UIC Trust Fund.
- Our Congressional delegates to delay the implementation of interest on the unemployment trust fund loans taken from the federal government
- Continuing the suspension of the “experience rate” component of the Unemployment Insurance Tax that businesses must pay to account for the many lay-offs that businesses were forced to make during the pandemic
2) Delay Business Property Tax Payments
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 1 of 2020. This is a similar request for the January portion of property taxes and would apply to businesses only.
3) Call for a Temporary Suspension of PFMLA
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.
We hope our Democratic colleagues and Governor Lamont share our concern and will agree to these proposals. Our businesses have suffered enough this year and they need this financial relief now more than ever.
For more information about these proposals, please read our press release. You may also contact me at any time with questions about the above or any other state issue.
Email: Tom.ODea@housegop.ct.gov