Connecticut Business Leaders: Use COVID Relief To Cover Unemployment Insurance

16 hours ago

Connecticut businesses want Governor Ned Lamont and state lawmakers to use federal coronavirus relief funds to pay for up to $1 billion they might owe for unemployment insurance.

Wendy Traub owns a small drilling business in Torrington called Hemlock Directional Boring. She said increasing taxes on business would penalize employers who’ve survived the pandemic and held on to their workers.

“Imagine receiving a tax bill from the state because you were mandated to be closed. Paying down our debt is a proactive fiscally prudent move. It just is. It protects businesses from being expected to pay back interest or loans on debts they did not choose to incur,” Traub said.

The state’s business leaders said 24 states already use federal coronavirus relief funds to help the state meet unemployment benefit obligations or pay down federal loans.

They said using the federal relief money would help businesses recover from the pandemic faster.