Would you like your confidential information released to the public for the world to see? Of course not, but a proposal in the Finance Committee would do just that ”“ release Connecticut businesses”™ proprietary tax information to the public, casting a blow to their competitiveness and harming the state”™s image as a place to do business.
Bill 6560 would require the Department of Revenue Services to make public a list of businesses accessing state-provided deductions, credits or exemptions, along with the actual amount of tax savings and advantages realized by each company.
The business community opposes this bill because it would discourage private-sector investment and job creation, which are needed to drive Connecticut”™s economic recovery. The bill would also allow public disclosure of certain private company financial information that is strategic and competitive to Connecticut”™s private companies.
Good tax policy is designed to promote economic development, job growth and more investment in the state. Proposals such as this bill work directly against those goals.
This proposal will impact Connecticut businesses in major ways. First, publicly disclosing sensitive tax information will put that valuable information where it shouldn”™t be ”“ in the hands of companies”™ competitors.
By making this data public, it will also immediately make Connecticut companies”™ operations and decisions open to the eyes and second-guessing of a wide range of interests. Business competitors might have the opportunity to review their chief rival”™s tax information. Parties in negotiations might be able to review pertinent tax data from the opposing side. And special interest advocacy groups would be able to use the information for political purposes.
Lawmakers must reject efforts such as this that would undermine business confidence, jobs and more investments in the state. Ultimately, this bill will be a heavy strike against efforts in Connecticut to appear more business-friendly.
Instead, legislators should focus on promoting tax policies that encourages business investment, innovation and productivity in the state.
Bonnie Stewart is CBIA”™s vice president of government affairs at the Connecticut Business & Industry Association in Hartford. Reach her at bonnie.stewart@cbia.com.
