This Problem Will Not Go Away

8.8% unemployment, a $385 million deficit, major companies like Pratt Whitney and Aetna eliminating jobs - what more will it take for Democrat leaders to realize that our state’s economic crisis is not going away?

Putting our head in the sand and gambling that the economy is going to improve significantly in the fourth quarter, is not only an unrealistic approach, but it lacks the leadership we need in the state legislature.

Enough is enough. Senator Williams and Representative Donovan need to convene a special session now to address our state’s growing economic problems, close our budget deficit, and preserve any chance of avoiding massive across the board tax increases.

Protecting Connecticut’s Economic Future

Connecticut is a wonderful place to live and work, but our success depends on our ability to hold the line against excessive government spending, and to institute long-term structural changes to our tax code that will strengthen our economy by attracting and retaining businesses and creating new jobs. Connecticut residents, families and businesses -- already saddled with some of the highest taxes in the country, transportation challenges and burdensome regulations -- are now also coping with the rising costs of energy and health care. As a result, business growth is slowing, unemployment rates are increasing, inflation is outpacing wages, and the average Connecticut worker at every income level earned less in 2006 than in 2002.

We must act now to restructure our government policies in a way that encourages economic growth through job creation.

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Senate Republican Jobs Proposal

As part of our long term plan to grow the state’s economy and improve our business climate, the Senate Republican Caucus is introducing a series of legislative proposals this year.

Our pro-jobs legislative package calls for expanding the 2007 Jobs Creation Tax Credit to benefit all businesses, and eliminate the need for businesses to first secure approval from the state Department of Community and Economic Development (DECD). Under our proposal, the credit would be applied annually to every net new job created. This new law would take effect on July 1st and make the credit applicable to income years beginning on or after January 1, 2008.

Also, Senate Republicans are calling for the legislature to repeal the annual $250 business entity tax, and to require DECD to conduct a cost/benefit analysis of all new and existing regulations every five years. And, finally, Senate Republicans are introducing legislation to promote “next generation” industries by extending the movie industry tax credit to industries that are likely to provide jobs for Connecticut’s middle-class working families. Targeted industries could include alternative energy, environmental remediation, optics and photonics, life sciences devices and nanotechnology. Companies that have not yet made a profit would be able to trade their tax credits to profitable Connecticut companies.