Malloy Vetos Tax Credit for Small Biz Over $650K; Didn’t Hesitate to Bond Hundreds of MillionsJune 7, 2018
The governor vetoed a tax credit for small business owners, saying the state would lost $650,000. He authorized hundreds of millions of dollars in bonding just last week.
Gov. Dan Malloy (D-Conn.) vetoed a bill Wednesday that would benefit small business owners, claiming that the $650,000 revenue hit to the state was enough for him to torch the bill.
The Associated Press reported:
He nixed a bill Wednesday that would allow certain business owners to claim a tax credit against their personal income tax for hiring manufacturing apprentices. The credit is currently available for businesses that pay the corporate tax.
Malloy vetoed a similar bill last year. He says it would allow would result in a loss of $650,000 in revenue per year and potentially allow some business owners and shareholders to have no tax liability.
Of course, Malloy didn’t hesitate to approve bonding of up to $233 million in general obligation (GO) bonds, and up to $183 million in in revenue bonds (or other transactions) on the State Bond Commission last week. In fact, he bragged about $81 million in bonds going to the troubled Department of Economic and Community Development (DECD), all to create or retain just 19,000 jobs.
Now, bonding and tax credits are two different items on any policy agenda. But pardon skeptics if they’re not convinced Malloy is actually deeply concerned about $650,000 in revenue, as the state continues to bond hundreds of millions of dollars amid regular budget crises.
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