There is a storm coming," he said. "Only about $5 billion in the $26 billion budget is discretionary spending. The rest, including Medicaid, pensions and corrections cost, we're mandated to pay. In 2012, we're going to have another $2 billion in pension costs and another 62,000 people eligible for Medicaid. He said 167 lines in the budget were eliminated entirely and all 657 lines were trimmed. But with the recession costing the state $3.2 billion in lost revenue he projects a $500 million deficit for the end of this year. However, [Edward G. Rendell] said he has a five-point plan to mitigate the looming losses that includes cuts in business tax rates, new taxes on "big oil" and "big tobacco" and the elimination of antiquated tax exemptions and loopholes. "It's a plan-a good plan. But...
Since I came to Washington 100 days ago, I've worked to reduce spending. Nothing is more important right now. If, however, we are to accomplish our cen-tral goal of creating jobs, it's time to reform our corpo- rate tax system, so that American companies can com- pete - both on our shores and abroad. At a whopping 35 percent, the United States currently imposes the second highest corporate tax rate in the industrialized world. When you add in state taxes, businesses pay a staggering 40 percent in taxes.
According to the Tax Foundation's State Business Tax Climate Index, Connecticut's business tax climate rates as the 39th best in the country, with only 11 states ranked worse. Gov. Rell has been on the right track with suggestions to eliminate the state estate tax and the corporate income surtax. She has also pushed to cut a local property tax that would force the state to reimburse localities. Predictably, some legislators would prefer to spend the surplus, and some have talked about raising taxes. The Connecticut legislature should follow the governor's lead - though not necessarily on the local property tax - and use the surplus as an opportunity to make fundamental changes to the state's business tax climate. The State Business Tax Climate Index points to two areas ripe for reform i...
State government finished its fiscal year Thursday with a surplus of more than $320 million, and that will trigger a reduction in business tax rates. The state's general revenue fund surpassed $4 billion in collections. That was more than 9 percent beyond what had been expected and means state businesses will pay lower tax rates beginning Jan. 1, 2012.
Small-business owners are warning that the economy would suffer under a health care bill proposed by House Democrats, which would drive tax rates for high-income taxpayers to levels not seen since before President Reagan's tax reform of 1986. The top federal income tax rate, which Mr. Reagan and a bipartisan Congress lowered from 50 percent to 28 percent, would reach 45 percent in 2011 if Congress and President Obama enact the surtaxes that are part of the health care reform plan that House Democrats announced Tuesday.
[...] the interest rates used in connection with estate and gift tax planning are at historic lows, enhancing the effectiveness of many wealth-transfer strategies.
New research from the Office of Advocacy shows that the average effective federal income tax rate faced by small businesses varies by the legal form of organization. Average rates range from 13.3% for sole proprietorships to 26.9% for S corporations. Exceptions to the normal statutory tax rates, such as deductions, exclusions, and credits, have the effect of lowering the tax rates paid by firms. The result is a difference between the statutory rate and the actual or effective rate paid by the business or its owners.
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