The Quinnipiac Chamber of Commerce urges rejection of Governor Dannel P. Malloy's proposed budget, which calls for steep increases in taxes without any shared reduction in the cost and size of state government.

"We recognize that the Governor inherited an unprecedented budget deficit and has called for 'shared sacrifice'. But the budget calls for tremendous sacrifices on the part of the business community by increasing taxes across the board without any firm commitment to reducing state spending. Although the proposed budget calls for some agency consolidations and concessions from state employee unions, it does not go far enough. Without reducing the size and cost of state government, we will not be able to avoid tax increases that will undermine Connecticut's economic recovery," said Robin Wilson, President & CEO, Quinnipiac Chamber of Commerce.

"The proposed budget will put us dead last in terms of competitiveness," Wilson pointed out. Connecticut was recently ranked 47th in the 2011 State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.

"Given the tax increases on the table, this ranking will only get worse. An increasing number of small and midsize businesses are organized as pass through entities and pay personal income taxes on any profits. Increasing the personal income tax is a huge hit on small and midsize businesses," Wilson said.

"In addition, the extension of the so-called 'temporary' surcharge on corporate income tax is also problematic because it erodes confidence in our tax system. Coupled with increases in state sales taxes, this budget is a jobs-killer."

"We are pleased, however, that the Governor has paved the way for more responsible budgeting in the future. By funding operating expenses with on-going revenue streams, reducing borrowing; and moving to Generally Accepted Accounting Principles, Connecticut will be better positioned to avoid future deficits," Wilson said, "We look forward to working with the Governor to resolve the budget deficit in a way that will not further undermine Connecticut's business climate.