State Rep. Whit Betts (R-Bristol, Plymouth) testified in support of proposed House Bill 5314, An Act Concerning Payments on Advances from the Federal Unemployment Account. The bill proposes to immediately provide $60 million in tax relief to all Connecticut businesses by eliminating a special assessment imposed in 2010 on employers to the state’s unemployment compensation fund.
“I continue to hear from business owners who are feeling the pressure of trying to operate in a state which continues to raise taxes and the cost of doing business,” said Betts in a press release. “There are many businesses in Bristol, Plymouth, and Terryville that will be forced to pay this surcharge in August, hindering their ability to hire new workers and possibly expand.”
The release said Betts was one of the 51 petition signatures to raise a bill that would eliminate the surcharge all businesses pay on money borrowed for the state’s unemployment insurance fund. The Democrat majority-controlled Labor Committee had refused to raise HB 5314 for a public hearing.
The surcharge, or special assessment businesses are charged, is used to pay the interest on the money Connecticut had to borrow from the federal government when the state’s unemployment fund went broke in 2009, said the release. By requiring the state to make a one-time payment now of $60 million, businesses will not have to pay a special assessment for the next three years.
“We have an opportunity in the legislature to take a step in the right direction toward making Connecticut more business-friendly, and helping to creating jobs in our communities,” said Betts in the release.
The proposed legislation was voted out of the Labor Committee last week and is now awaiting further action by the legislature.