Connecticut House Bill HB05438

Connecticut 2010 Regular Session

• Introduced: 3/4/10
• Refer: 3/4/10
• Report Pass: 3/18/10

Caption

An Act Studying The Effect Of The Repeal Of The Corporation Business Tax.

Impact

If enacted, this bill would have significant implications for state revenue and state taxation policy. The task force's findings could potentially lead to a shift in how taxes are structured in Connecticut, particularly concerning businesses. The objective behind studying the repeal is to identify pathways that would enhance the state's attractiveness to businesses, potentially resulting in job creation and increased economic activity. Depending on the recommendations made, the state could see adjustments to existing tax structures that could benefit or hinder various sectors of the economy.

Summary

House Bill 05438, introduced during the February Session of 2010, establishes a task force tasked with studying the effects of repealing the corporation business tax in Connecticut. This bill is aimed at evaluating how such a repeal could potentially influence the business environment within the state and providing recommendations for modifications to state taxation statutes to foster growth in business and industry. The task force is intended to consist of a diverse group of members, including corporate executives, economists, and other relevant representatives, ensuring that a wide array of expertise is brought to the discussion.

Sentiment

The sentiment surrounding HB 05438 is one of cautious optimism among proponents who believe that eliminating the corporation business tax could catalyze a more favorable business climate in the state. Advocates argue that such a move would eliminate an impediment to economic development, thereby encouraging both existing businesses and new enterprises to invest in Connecticut. However, there may be concern regarding the potential loss of revenue that this repeal could incur, raising questions among legislators and economists about the long-term economic sustainability of this approach.

Contention

Notable points of contention surrounding this bill include the balance between fostering a business-friendly environment and maintaining adequate state revenue. Critics may argue that repealing the corporation business tax without a viable compensatory mechanism could destabilize state finances. Furthermore, discussions may center around which sectors would benefit most from such a repeal and whether it would disproportionately favor larger corporations at the expense of smaller businesses or local enterprises. These considerations will be pivotal in shaping the discussions and recommendations from the task force.