Senator Dan Debicella (R-21) joined a coalition of small businesses and a bipartisan group of legislators in calling for the elimination of the state’s business entity tax.  The business entity tax is a $250 annual tax that all businesses in Connecticut must pay, regardless of size or profitability.

“Small businesses have become increasingly important to our state’s fiscal well-being. We need to help grow the state’s economy by nurturing the growth of these small businesses by eliminating the business entity tax,” said Senator Debicella, Senate Ranking Member of the General Assembly’s Commerce Committee.

“The business entity tax is a ‘tax on existing’.  We are saying that small businesses must pay a tax just for doing business in Connecticut—and that is not good tax policy or good for creating jobs,” Debicella said.

Senator Debicella made his comments at a March 11th press conference at the Legislative Office Building in Hartford. The press conference was organized by a small business coalition led by the National Federation of Independent Businesses (NFIB) and joined by Chambers of Commerce, trade organizations, legislators and Connecticut Business Advocate Rob Simmons.

The Commerce Committee, where Debicella is ranking member, voted to eliminate the business entity tax this week.  The bill now goes to the Finance Committee for consideration in this year’s budget. 

“Imagine—we are talking about eliminating a tax in Connecticut.  Not lowering it, not tweaking it, but actually eliminating it,” Debicella said.  “Although some people are talking about a partial appeal, we need to support a full repeal of the entire tax.”

The tax brings in approximately $35 million per year, which Debicella said could be made up from the state’s estimated $160 million surplus for next year.

Republican legislators began calling for elimination of the $250 annual tax on businesses operating in Connecticut since it was established in 2002.   However, Senator Debicella noted that completely eliminating the business entity tax this year has attracted broad bipartisan support.

“Nothing happens in the General Assembly without bipartisan support. Abolishing the business entity tax is not a Republican issue, or a Democrat issue. It is a Connecticut issue, something that is in everyone’s best interest to do this year,” said Senator Debicella.