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Local state Rep. wants to get rid of the 'business death tax'

A proposal to stop a state fee companies are forced to pay if they go out of business is being backed by Newtown Representative Mitch Bolinsky.  He says the filing fee ranges from $20 to $120.  During this continued economic recovery, Bolinsky says he prefers to find deficit mitigation money with spending cuts in the proposed state budget rather than nickel and diming businesses to close the gap. 

 

Bolinsky says right now the state forces businesses to pay the $250 Business Entity Tax to open their doors and effectively whacks them with a parting-shot when they close up. 

 

The fee would generate an estimated additional $400,000 annually for state coffers.  Secretary of the State Denise Merrill says if the fee is eliminated, more business might comply with the filing law leading to more accurate records.

 

House Minority Leader Lawrence Cafero introduced the amendment, pointing out the irony of taxing businesses that are dissolving and likely already experiencing financial hardships.

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