Plans for higher corporate taxes, a dip in consumer spending, Connecticut revenues, and actions of the Connecticut legislature are among the top business news items this morning.
National
Congressional Democrats are developing proposals that would make significant revisions to a 2017 tax overhaul, which included a reduction in the corporate tax rate from 35 percent to 21 percent. President Joe Biden has called for the rate to be increased to 28 percent, and proposals could call for increasing taxes on companies’ foreign income.
Business trends
Consumer spending fell 1 percent in February, following a 3.4 percent gain in January. Economists suggest that the trend is a result of a drop in personal incomes as well as severe winter storms that affected large parts of the United States.
Connecticut
Connecticut tax revenue has remained healthy despite the COVID-19 pandemic, according to financial report. The state is projected to close the fiscal year on June 30 with a $245 million surplus, along with $555 million through a secondary savings program.
The Connecticut House of Representatives has voted along party lines to expand Governor Ned Lamont’s emergency powers for a month beyond April 20. Democrats contend that the extension is necessary to aid vaccine distribution and other COVID-19 response efforts, while Republicans argue that the governor’s ongoing emergency powers raise concerns about the executive branch’s balance of power with the legislature.
The House unanimously passed a bill to extend relaxed rules on outdoor dining and services through March 31, 2022. These rules were eased to help restaurants endure the COVID-19 pandemic while maintaining proper safety protocols, and the bill also allows municipalities to make permanent zoning changes to expand outdoor sales.
