Lawmakers Still Don't Grasp Magnitude of Crisis

The following appeared in Sunday's Waterbury Republican American 4/19/09

Connecticut's business owners and their employees understand their future depends to a large extent on the state budget adopted by the legislature this year. It is well past time for the legislature's Democratic leadership to realize it as well.As a small-business owner, I was dismayed when the majority unveiled its proposal to impose the biggest tax increase in Connecticut history. I hope there will be insufficient support in the legislature to impose a $3.3 billion increase in property, income and business taxes.Nevertheless, that the Democrats were even willing to put such a devastating plan on the table should send a chill down the spine of every business owner in Connecticut. Tax increases are always unwelcome, but when unemployment is at 7.4 percent, even half-hearted talk from legislators about punitive tax increases sends a powerfully negative message to businesses trying to survive.While Connecticut businesses decide between pay cuts and layoffs, legislative Democrats have turned to huge tax increases without any serious attempt to cut spending or streamline government.Recently, the Department of Economic and Community Development (DECD) released its economic analysis of proposals advanced by the legislature's Finance, Revenue and Bonding Committee. The DECD analysis found imposing a 30 percent surcharge on corporate taxes and eliminating the sales-tax exemptions on computer and data-processing services could cost the state 2,670 jobs each year for the next 10 years. Under that scenario, the state's gross domestic product would decline by $344 million and personal income would drop by $250 million each year.I will do everything I can to convince my fellow legislators that passing a budget that includes punitive tax increases would plunge Connecticut into an even deeper recession. Meanwhile, judging from what we have seen so far, Connecticut's business owners, employees, taxpayers and families must be worried about exactly what kind of state budget the legislature will adopt. Whom will it help? Whom will it hurt? Does the legislature have the collective courage to reduce the size of state government? Cut spending? Control taxes?Connecticut's businesses and the workers who depend on them for their jobs need a clear, strong message from the legislature that its members are ready to work together, and with Gov. M. Jodi Rell, to pass a responsible state budget. Now.Republican legislators are and have been ready to help craft a state budget that encourages economic growth and provides necessary services at a cost taxpayers can afford. We owe it to the citizens who depend upon us to put aside partisan politics and pass a responsible state budget.Sen. Rob Kane, R-32nd District (rob.kane@cga.ct.gov), represents Bethlehem, Bridgewater, Middlebury, Oxford, Seymour, Southbury, Thomaston, Roxbury, Watertown and Woodbury.