The COVID-19 crisis has completely decimated our economy. And while the auto supply industry was deemed essential by Governor Ned Lamont, and therefore allowed to remain open, we, like many local businesses across the state, have been hit hard by COVID-19.
As more people across the state are vaccinated, auto and tire mechanics are eager to get back to normal. We are extremely grateful for the support we have received from our customers and look forward to both seeing all of our customers again, as well as bringing back employees who were made redundant during the crisis when shop doors were either closed or only open for a limited time. times, as well as hiring new employees.
Unfortunately, the Governor and the General Assembly are making that comeback a little more difficult by proposing legislation that would make it harder for auto mechanics to continue operating. This comes in the form of a health insurance tax proposal that would make it harder for auto mechanics and local businesses to provide robust health insurance for their employees.
This begs the question: Why would the Governor and General Assembly propose a health care tax, in the midst of a pandemic, when hard-working employees need their health care the most? Both parties claim that this tax will expand health care coverage, but the truth is that it will do the exact opposite. Instead, this tax will be levied on health insurance plans purchased by local business owners for their employees and families. This means that in essence, this tax will work like a sales tax – passed on to the consumer, and in this case to hard-working employees and middle-class families across the state. And that extra tax will be on top of the nearly $700 a year Connecticut residents pay in taxes on their medical coverage.
These misguided proposals to tax employee health insurance are in addition to the billions in federal aid the federal government is sending to Connecticut, including funds to make health care more affordable. On top of that, the state is expected to close its budget with $800 million remaining. This health insurance tax proposal could deter business owners from hiring additional staff after this crisis and help restore Connecticut’s economy.
Connecticut residents are excited to return to their old way of life as vaccines are rolled out and more people are vaccinated. And as auto and tire mechanics, we have a responsibility to the people in our community, helping to keep their cars running smoothly. But Governor Lamont’s General Assembly shouldn’t make it even more difficult for small businesses to reopen and operate. Our state’s businesses have endured enough, and the state should not add another burden on their backs. Instead, legislators must do whatever they can to help our businesses thrive. These proposed Medicare taxes would do just the opposite, and the Governor and the General Assembly would do well to get rid of both proposals.
Tony DeSimone is the executive director of the New England Tire & Service Association
