An initiative to help small businesses in Connecticut save money. Governor Ned Lamont announced the increase in the business tax rate on Wednesday, saying it is important to the state’s economy.
A lot of work goes into a small business, and Welden Hardware in Simsbury is no different. Owner Melissa Brett puts her heart and soul into the store.
“So, most of the time we have our own issues and things, we are the last to get paid. Our staff will be paid. Bills will be paid, but we are the last to pay,” he said.
Come tax season, managing your finances can be difficult.
“Most of the work is small business. We have our own assets, but we are responsible for everything in the business because it doubles the impact of us,” Brett said.
But there could be relief on the horizon. Lamont announced plans to roll back the corporate tax credit, which allows small business owners to receive more tax credits on their income.
The governor said small businesses are vital to Connecticut’s economy.
“That’s the engine of economic growth. That’s the engine of economic opportunity,” Lamont said.
State House Republicans support the move, saying it’s time to help small businesses.
“We’re looking at the cost of food and services. Businesses are dealing with health care increases, insurance increases,” said Rep. Vincent Candelora of North Branford.
The Connecticut Business and Industry Association praised the proposal, saying it would help 120,000 businesses in the state save $60 million.
“This one is going to have a big impact in the state of Connecticut, in a lot of different industries,” said Eric Gjede, CBIA’s vice president of public policy.
That means six thousand for an individual business. According to Brett, there is a lot of money that can make a difference and provide flexibility.
“We can start paying ourselves for some things or pay some things back, either that way or put it back into the business or give our employees a raise,” he said.
Brett said it’s great to see the work of small businesses being appreciated.
“We are the backbone of our communities. We’re in the PTO fundraiser and we try to be part of the community,” he said.
More information about this plan will be announced in the governor’s annual budget speech next month.