Connecticut House Bill HB05891

Connecticut 2017 Regular Session

• Introduced: 1/19/17
• Refer: 1/19/17

Caption

An Act Requiring A Study Of The Taxes Imposed On Businesses Organized As Pass-through Entities.

Impact

The implications of passing HB 5891 are significant for the state’s tax framework as it focuses on businesses that operate as pass-through entities, commonly seen in partnerships and S corporations. A deeper understanding of how these entities are taxed in Connecticut compared to other states could lead to insightful recommendations for amendments in the state tax code. Should the findings indicate a disparity, the anticipated adjustments could potentially alleviate the tax burden on these businesses, fostering a more favorable economic environment that encourages business growth and sustainability.

Summary

House Bill 5891 is an act that mandates the Commissioner of Revenue Services to conduct a comprehensive study on the taxation of businesses organized as pass-through entities in the state of Connecticut. The act's primary objective is to compare and analyze the tax obligations these businesses face in Connecticut relative to similar entities in other states. This comparison aims to identify inequities in the state’s tax structure and allow the Commissioner to suggest legislative changes poised to enhance tax fairness for these businesses.

Contention

While the bill is primarily a study initiative, potential points of contention may arise during the analysis phase. Stakeholders may express concerns regarding the state’s capacity to shift towards a more equitable tax system based on the study’s outcomes. Critics could argue that altering tax legislation might disproportionately benefit certain business structures at the expense of others, thereby complicating Connecticut’s overall tax environment. Additionally, discussions about who should be prioritized in the recommendations could lead to debate among various business sectors affected by these tax changes.