The bill attempts to address tax equity by requiring corporations with members operating both inside and outside the state to more accurately calculate their tax liabilities through apportionment. This method aims to reduce tax avoidance strategies that may occur when corporations shift profits to jurisdictions with lower tax rates. The adjustments proposed in HB 06628 will have significant implications on the financial responsibilities of businesses, especially those participating in international operations or corporate group structures.
Summary
House Bill 06628, titled 'An Act Concerning Tax Fairness,' seeks to amend various sections of the general statutes concerning the taxation of businesses, particularly focusing on how corporations file combined unitary tax returns. This legislative change is aimed at ensuring that multinational corporations accurately report their earnings and tax liabilities within the state, thus promoting tax fairness across various sectors. Notably, the bill introduces provisions for handling capital gains and losses, detailing how these should be treated when determining a combined group's net income for tax purposes.
Contention
Critics of the bill argue that it could impose undue burdens on smaller businesses that may struggle with the complexities of combined reporting. Concerns have been raised regarding the administrative challenges associated with the proposed tax framework and whether it might hinder economic growth by discouraging business expansions in the state. Proponents contend that the bill is necessary to close loopholes that large corporations exploit, ensuring that all businesses contribute fairly to state revenue.
An Act Authorizing And Adjusting Bonds Of The State And Concerning Provisions Related To State And Municipal Tax Administration, General Government And School Building Projects.
An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.
An Act Concerning The State Budget For The Biennium Ending June 30, 2017, And Making Appropriations Therefor, And Other Provisions Related To Revenue, Deficiency Appropriations And Tax Fairness And Economic Development.