The National Federation of Independent Business (NFIB) has released a statement ahead of Governor Ned Lamont’s annual State of the State Address, focusing on the need for long-term tax reforms to support small businesses in Connecticut.
Andy Markowski, NFIB State Director, commented on the governor’s upcoming budget and legislative proposals. “NFIB welcomes any serious discussion around tax relief and affordability in Connecticut, including Governor Lamont’s recent announcement that his 2026-27 budget and legislative proposals will include one-time tax rebate relief for residents as part of efforts to ease the high cost of living and energy expenses, as well as broader tax-cutting proposals that are gaining traction in this year’s legislative session.”
Markowski stressed that temporary measures are not enough for small business growth. “But Connecticut’s small business owners need more than one-time rebates to thrive — they need long-term, structural tax reforms that reduce the overall tax burden on small business earnings and strengthen economic opportunity on Main Street. In this context, NFIB urges the Governor and legislators to hold the line on tax increases and avoid any policies that would raise costs on small business income or investment.”
He pointed out that many local businesses operate as pass-through entities taxed at individual rates. “Many small businesses in Connecticut are pass-through entities whose earnings are taxed at the individual income level. Restoring the full value of the pass-through-entity tax credit back to its original level as well as extending eligibility for existing tax credits to pass-through entities would be a particularly positive step for Main Street employers.”
The NFIB also called for policy changes addressing rising operating costs, such as expanding health insurance options through Association Health Plans (AHPs) and reducing occupational licensing fees. “NFIB also calls on the Governor and the legislature to pursue policy solutions that address rising operating costs for small businesses, including improved health insurance choices through Association Health Plans (AHPs) — a real help for many employers facing steep insurance premiums — and reductions in occupational licensing fees, especially for skilled trades and entrepreneurs.”
Markowski concluded by emphasizing continued advocacy during ongoing policy debates. “Finally, as Hartford policymakers debate tax relief and budget priorities this session — including proposals to cut income taxes and other tax burdens — NFIB will continue to advocate for smart, pro-growth tax policy that supports small business success without jeopardizing Connecticut’s overall fiscal stability.”
The NFIB has represented independent business owners across all 50 states since 1943.
