Piscopo Slams Anti-Jobs Tax Hike
HARTFORD- State Rep. John Piscopo (Burlington, Harwinton, Litchfield, and Thomaston) voted against an unfair tax hike on employers with 500 or more employees in the Finance, Revenue and Bonding committee today April 11th.
The bill would force companies with 500 or more employees to pay a $1/hour per employee tax if the company pays less than 130% of the minimum wage.
HB-5069, An Act Concerning Low Wage Employers, would assess a quarterly fee on (1) employers with 500 or more employees and (2) franchisors whose franchisees collectively employ 500 or more employees starting January 1, 2015. These employers and franchisors (“covered employers”) must pay a $1- per- work-hour fee for each person who was (1) on the employer’s payroll, or the payroll of one of the franchisor’s franchisees, for the last 90 days of the most recently completed calendar quarter and (2) paid wages by the employer or franchisee that were less than 130% of the state’s minimum wage.
Rep. Piscopo, a member of the Finance, Revenue and Bonding committee, said, “This bill sends the wrong message to our business community. In these very difficult economic times that Connecticut continues to face, the last thing the legislature should be doing is imposing more taxes on businesses. They are our job creators. My constituents continue to tell me that getting people back to work is a priority. It is important that we support our business community with legislation that encourages growth, so that they will in turn reinvest their capital for expansion, which means more jobs. Government does not create jobs. And this legislation is an example of a bad jobs proposal for our state.”
According to the nonpartisan, nonprofit association, National Federation of Independent Business which represents 350,000 small and independent business owners across the nation, the proposed tax would also impact small businesses and employees of Connecticut franchises which would cause a significant financial and administrative burden on employers. In order to pay the penalties imposed, individual franchise owners will have to increase their prices or reduce costs by cutting back on employee hours.
The bill was voted down by the Finance, Revenue, and Bonding committee this afternoon.
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