Press Release

Connecticut Business Leaders Urge Legislature to Oppose New Health Insurance Tax

Media Contact:
Bernard Kavaler
(860) 729-3021

Connecticut Business Leaders Call on Governor Lamont and the General Assembly to Oppose Proposed Tax Increase
Over a dozen organizations released a letter urging lawmakers to vote “no” on a new health insurance tax proposal targeting local businesses and working-class families

Hartford, CT – As a response to the Governor and Assembly’s continued support of a new health insurance tax proposal, more than 20 leading employer organizations and associations released a letter urging lawmakers to reconsider. Under both proposals from the General Assembly (SB 842) and Governor Ned Lamont (HB 6447), the tax would significantly raise health insurance costs for any worker or family who gets their health coverage through a business based in the state of Connecticut or through the fully insured marketplace.

“Taxing the health insurance that local businesses and their employees purchase runs counter to the idea of protecting coverage for all Connecticut workers and families. Working individuals in Connecticut need their health coverage, now more than ever. They cannot afford to lose access to their doctor, local hospitals, critical services like COVID-19 testing and treatment, or the coverage they are familiar with and counting on in order to stay healthy,” wrote the organizations in the joint letter. “Not only will this hurt middle-class families, a new tax that raises costs for some – namely local businesses and their employees – only creates greater economic uncertainty in our state.”

“From a fiscal standpoint, this tax proposal makes zero sense,” according to William D. Moore, President & CEO, Greater New Britain Chamber of Commerce. “Connecticut closed out our fiscal year with over $800 million to spare, along with an addition $555 million in the bank through a saving program tied to business tax filings. Not to mention our state is receiving more than $2.6 billion in federal stimulus support. By my accounts this budget surplus does not indicate the need for a new tax.”

“Independently owned tire dealerships and automotive service centers have been some of the hardest hit during the pandemic, and local business owners across the state have been doing everything they can to keep their employees on payroll and provide them the benefits they need. I cannot begin to understand why our elected officials think now is the time to impose a tax on these struggling businesses who provide health insurance to their staff,” stated Tony DeSimone, Executive Director of the New England Tire & Service Association.

On April 1, local business leaders, led by the Connecticut Business and Industry Association (CBIA), held a press conference and called on Governor Lamont and the General Assembly to cease further consideration of the proposed tax and acknowledge the negative efforts it would have on local businesses and working-class families in the middle of a public health and economic crisis.


The Stop The HIT Coalition represents the nation’s small business owners, their employees and the self-employed who worked to repeal the Health Insurance Tax. Since the Coalition’s formation in 2011, it has grown to include more than 35 national organizations, representing millions of small business owners across the country. For more information, please visit