CT Republican House Leader: Stop New Payroll Tax
CONNECTICUT — Incoming state House Republican leader Vincent Candelora asked Democratic colleagues to delay the half of a percent paid family and medical leave payroll tax that is scheduled to start Jan. 1.
Collection for benefits begins Jan. 1, but people in Connecticut won’t be eligible for benefits until the start of 2022. That will allow the program to build up funds before benefits are paid out.
“We believe at this time when the economy has stalled out and unemployment is double what it normally is that we delay temporarily this payroll tax on the state of Connecticut,” Candelora said in a Thursday news conference.
He also noted that the law is written so that the benefit level would be reduced if there wasn’t enough money in the program from the payroll deductions.
Instead, Candelora said the federal government should extend the temporary family leave program under the Cares Act.
Gov. Ned Lamont said the Republican proposal is a hard no for him.
"We have learned during this Covid crisis we need paid medical leave certainly more than ever," Lamont said at a Thursday news conference.
He added that President Donald Trump's administration authorized emergency paid medical leave for the coronavirus to encourage quarantine since people wouldn't have to worry about losing pay.
"It reinforced in my mind why paid medical leave is so important, so this is the exact wrong time to stop what's going to be a very important change for Connecticut families, make them safer make us safer," Lamont said.
The state’s paid leave program would offer up to 12 weeks of benefits if an applicant meets qualifications. It also offers an extra two weeks for serious pregnancy-related health conditions.
Related: New Payroll Tax Starts Jan. 1 In Connecticut
The benefit level is on a sliding scale with minimum wage earners getting 95 percent of their average weekly wage.
Employers can opt out of the program if they offer their own family leave program with the same or better benefits than the state program.
Business relief
Candelora is also asking that a portion of Connecticut’s remaining CARES Act funding be used to bolster the state’s unemployment compensation fund, which has resorted to borrowing around $800 million from the federal government.
In addition, Candelora urged federal government to stop interest payments on the money. The fund would need to be replenished by businesses through their unemployment taxes.
Lamont didn't pull any punches with what he thought of the proposal.
"Seems like a pretty dumb idea to me, but it's the first time I'm hearing about it, they should give me a call," he said.
U.S. Sen. Richard Blumenthal said in a letter to Candelora that he would support the federal government extending the interest-free period for states to borrow to cover unemployment costs.
"You may be pleased to know that earlier this week I joined several of my colleagues to introduce the American Worker Holiday Relief Act," Blumenthal wrote. "This bill would address the looming cliff for millions of workers by extending and expanding current unemployment programs and retroactively extending the prior $600 boost in state unemployment benefits."
Lamont said Connecticut borrows money from the federal government at a very low interest rate. He also said he hoped the federal government turned the loan into a grant for states.
Pulling Cares Act funding would also mean it has to come from somewhere else, such as education or coronavirus testing. The majority of the money has already been allocated.
"There's not like a lot of money hanging around," Lamont said.
Candelora also urged Lamont to sign an executive order that would allow businesses to delay property tax payments. A similar executive order was signed earlier this year for mid-year payments.
Lamont said he would have to talk to mayors and first selectmen first since they are also dealing with financial complications due to the pandemic.
This article originally appeared on the Across Connecticut Patch
