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Connecticut Labor Group Advocates Higher Taxes

April 12, 2017 By Staff
Connecticut Labor Group Advocates Higher Taxes

The real question now: will Connecticut leaders heed the warnings from state businesses, or follow the call from Big Labor for more taxes?

A new study, published by the Center for Public Policy and Social Research on behalf of the state’s AFL-CIO, claims that state businesses can, in fact, pay more. The study brushes aside claims that the state has a a ‘hostile’ business climate:

Connecticut businesses can afford — and should pay — higher taxes to support investments in education, health care and other priorities to grow the economy and preserve quality of life, a report sponsored by the state’s biggest labor group urged Wednesday.

The Connecticut Business and Industry Association (CBIA) was quick to rebut the study. As reported in the CT Mirror, CBIA President Joseph F. Brennan blamed slow growth in Connecticut on not only aging transportation infrastructure and the state’s budget liabilities, but also the high cost of doing business:

Connecticut’s recovery from the last recession has lagged the nation’s, and the state lost jobs in 2016 while nearly every other state made gains, Brennan said, adding that the high cost of doing business here, an aging transportation system, state government’s budgetary instability, and the loss of trained workers to other states, are the chief obstacles.

When General Electric (GE) departed the state for Boston, many linked high taxes and the state’s reputation as anti-business as the primary reasons for the company’s relocation:

GE’s decision to leave Fairfield for Boston is another sad marker in the downhill slide brought about by Connecticut’s high-tax, high-regulation, anti-business policies of the last 25 years.

This suggests the new study may be an outlier when looking at the state’s economic woes. Leading economists like Nicholas S. Perna have highlighted the dire budget problems facing the state. Some are even wondering if Connecticut’s budget will sink small towns.

The real question now: will Connecticut leaders heed the warnings from state businesses, or follow the call from Big Labor for more taxes?