Connecticut House Bill HB05261

Connecticut 2019 Regular Session

• Introduced: 1/14/19
• Refer: 1/14/19

Caption

An Act Phasing Out The Capital Stock Tax.

Impact

The proposed phase-out of the capital stock tax is likely to have significant implications for state revenue. Supporters of the bill believe that by removing this tax, businesses may be more inclined to expand their operations and make greater investments in the local economy. However, critics caution that this could lead to a decrease in state revenue, impacting funding for public services. It raises a broader debate about the balance between incentivizing business growth and maintaining adequate state funding for essential services.

Summary

House Bill 05261 aims to phase out the capital stock tax over a three-year period, beginning January 1, 2020. The capital stock tax is a tax imposed on the average value of a company's capital stock. Proponents of the bill argue that eliminating this tax will reduce the financial burden on businesses operating within the state, potentially leading to increased investment and economic growth. The phased approach provides a gradual transition for businesses to adjust to the elimination of this tax.

Contention

Notable points of contention surrounding HB05261 relate to its potential impact on state fiscal health and the prioritization of business interests over public funding. Advocates cite the stimulatory effects of tax relief for businesses, whereas opponents express concern that a reduction in tax revenue could result in cuts to critical programs and services that benefit the public. The discussion reflects ongoing tensions in fiscal policy concerning taxation and public investment in infrastructure and services.