Connecticut’s Corporation Business Tax: It’s Time for Repair

A comprehensive research report on Connecticut’s corporation business tax, the first of its kind in the state. Written in quasi-lay language, the report addresses the central question of what role, if any, the corporation business tax should play generally in creating a fair and balanced tax system, and specifically in helping to address Connecticut’s current and projected General Fund deficits. It first presents the rationale for a corporation business tax, and then presents data about changes in Connecticut’s corporate business tax revenues over time, and relative to other states. The report next examines what factors have contributed to the decline in our corporation business tax revenues. It concludes by summarizing some of the ways Connecticut could reverse this trend while maintaining the state’s economic competitiveness, including measures that other states – including neighbors such as New Jersey, New York, and Massachusetts — have adopted. This report is anticipated to be the first in a series on several of Connecticut’s primary taxes.(66 pp.)