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August 19, 2009

Danbury Square Box Company Hosts Legislative Roundtable
to Discuss State Budget, Decry Proposed Tax Increases

Danbury, CT - Senate Republican Leader John McKinney (R-28), House Republican Leader Lawrence F. Cafero Jr. (R-142), Danbury State Senator Michael McLachlan (R-24), Danbury State Representative Jan Giegler (R-138), and other legislative leaders today met with executives and employees at Danbury Square Box Company to discuss the state budget and highlight the harmful impact the Democrats’ proposed $1.8 billion tax increase would have on Connecticut small businesses. The company’s owners, Chris Ann and Michael Allen, discussed their efforts to keep Danbury Square Box Company afloat during the current recession. They said it is the wrong time to impose income tax hikes and profits surcharges on Connecticut’s primary job creators.

"Like a lot of people in this economy we are struggling to stay afloat. Our sales are down 30% this year and we've already laid-off employees, cut contributions to 401k's, and scaled back on overtime. Any increase in taxes will be the tipping point for us,” said Michael Allen.

Founded in 1906, Danbury Square Box Company is a leading corrugated carton and dimensional packaging company whose products and services include: designing and producing corrugated boxes and displays, shipping containers and partitions; die-cutting; laminating; custom printing; and fulfillment. They have served a wide range of business-to-business clients including Duracell, GE Capitol, IBM, MasterCard, Pepsi and Pfizer.

“My wife and I would like to continue the tradition started by my great-grandfather and perhaps hand it off to our children someday. Connecticut is our home and we want to stay here, but the tax increases folded into this most recent budget proposal could force us to make deeper cuts that hurt not only our employees but also our community and state," said Michael Allen.

Republican legislators and small business owners across the state have been fighting proposed tax hikes for months, arguing that the best budget for the state of Connecticut is one that reduces spending, eliminates government waste and does not raise taxes.

Senator McKinney reiterated those points on Wednesday. “Connecticut has already lost more than 60,000 jobs in this recession. Small businesses and their employees simply cannot afford the Democrats $1.8 billion tax hike. What we’re hearing all over the state is that working families and small businesses expect government to make the same difficult choices they’re making in their own lives. That means making responsible spending reductions and passing a balanced budget that the people of Connecticut can afford.”

Representative Cafero agreed, saying, “Companies large and small are operating on razor thin margins in this recession. Any more costly regulations, red tape, mandates or new taxes could mean the difference between profit and loss, more layoffs or ultimately closing their doors. Our competition for jobs is not necessarily overseas but down south and in other states.’’

Wednesday’s roundtable also included representatives from the Danbury Chamber of Commerce, Danbury Metal Finishing, Enhance-A-Color and Ergo Chef/Capital Design and Engineering.

Danbury-area legislators noted the impact state budget negotiations will have on local businesses. "Mike and Chris Ann carry on a tradition of hard work that has been a cornerstone of the Danbury business community for four generations," said Senator McLachlan. "However, by choosing to tax Connecticut residents so heavily, the majority Democrats' budget plan will push people like the Allen’s out of the state or out of business altogether. This scenario is unfortunately not unique to the Allen's or to Danbury and is being played out in towns and cities throughout our state where businesses, families and individuals are struggling to make ends meet."

"Companies like Danbury Square Box pay good wages and benefits to employees, yet the Democrats have placed a big target on their backs with their tax increasing budget,” said Representative Giegler. “They can spin it all they want, but the Democrats in the Legislature have chosen government spending over protecting the jobs of Connecticut workers. At a time when we are seeing record unemployment, it is beyond irresponsible that they would put peoples' livelihood at risk for the sake of preserving the status quo in Hartford. The Republican budget alternative protects Connecticut jobs while preserving funding for services to those most in need. All we ask is that government make the same sacrifices that every family in Connecticut has made in this recession."