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Community Corner

Perillo, Miller & House Republicans Propose Measures for $247 Million in Sales Tax Cuts, Boosting Economy and Growing Jobs

HARTFORD – Rep. Jason Perillo (R-113) and Rep. Larry Miller (R-122) stood with House Republicans today announcing a plan to save consumers a total of $185 million by restoring tax exemptions for clothing, footwear and over-the-counter medicine, and provide small business relief by eliminating a special unemployment assessment of $59 million - without adding to the state deficit.

The Shelton legislators said the total cost of $247 million for the initiatives will be covered through available funds and will not create future budget deficits.

“This would be a positive step forward in reversing the damage done to the state economy through the tax hikes of Governor Malloy and legislative Democrats,” said Rep. Perillo.  “With our state at 25,000 fewer people on the job than when the governor took office, it’s clear the current approach doesn’t work.  Our proposals are aimed at improving the economic health of the state with targeted relief to the small businesses that create jobs, and families of Connecticut who continue to struggle three years after this governor enacted the largest tax increase in state history.”

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“The only way to help this economy grow is to provide relief to the small businesses that create jobs,” said Rep. Miller.  “There are 65,000 working age people who have left the state.  The way to fight unemployment in Connecticut isn’t to send the unemployed to other states.  By adopting the common sense proposals we can start the important process of making Connecticut friendlier to business and set the stage for job creation.”

Restoring the tax exemption on clothes and footwear:

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  • The clothing and footwear exemption for items under $50, projected to cost $167 million, is slated to be restored in July of 2015. Republicans said that it is prudent to advance that timeline to April 1 of this year - Democrats took away the exemption in 2011 while attempting to balance the budget. The exemption will increase sales and help businesses meet their bottom lines.

 Eliminating Special Assessment on businesses for the state unemployment fund:

  • The legislators said pre-paying the interest of $59 million on money borrowed from the federal government to cover unemployment benefits at the height of the recession will spare businesses from having to again foot the bill. Businesses, many of whom did not layoff a single worker, have been saddled with three consecutive special assessments to cover the interest, costing them $71 million since 2010.

Republicans noted respected state economist Donald Klepper-Smith, in the business 35 years, who earlier this week said “Let me be very clear, the governor does not create jobs, businesses do. The governor’s claim on job growth rings hollow. State government does not create jobs. Their job is to create an overall environment for business growth.’’ 

Restoring tax exemption on non-prescription drugs:

·         Restoring the sales tax exemption for over-the-counter drugs that Gov. Malloy eliminated in 2011 will also be “revenue neutral.’’ Republicans proposed covering that loss of revenue of $21 million by keeping the Earned Income Tax Credit at the current rate of 25 percent of what a person would receive from filing their federal Earned Income Tax Credit returns. The rate is scheduled to go up to 30 percent of the federal rate over the next two years.

Perillo and Miller said House Republicans will present a full agenda for the coming legislative session that begins Feb. 5.

 

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