Sampson: Hearing Set for $60 Million in Employer Tax Relief

HARTFORD – State Representative Rob Sampson (R-80) said today that the Labor Committee has scheduled a March 11th hearing for House Republicans’ raised bill HB 5314 that will provide $60 million in tax relief in unemployment insurance costs for all state businesses. 

Sampson and House Republicans used the parliamentary tactic of petitioning the bill out of the committee last week in order to get a public hearing scheduled after the Democratic chairs of the panel refused to raise the issue.

“Connecticut has built a tremendous number of obstacles to allowing employers to build and grow jobs here,” said Sampson.  “The elimination of this tax will lift a significant barrier to job creation and expansion.  Businesses across Connecticut should take the opportunity to come here and be heard by the Labor Committee and make it clear that Connecticut’s recovery begins with lifting these strangling impediments on employers.”

The proposed legislation will eliminate the $60 million in surcharges that all business face this August that will cover the interest costs on money Connecticut borrowed from the federal government for unemployment insurance. That fund became insolvent in late 2009 during the recession when the unemployment rate spiked.

The $60 million would come from the unanticipated revenue now on Connecticut’s books and would not have any impact on future budgets.