Connecticut House Bill HB05550

Connecticut 2011 Regular Session

• Introduced: 1/20/11
• Refer: 1/20/11

Caption

An Act Concerning A Tax Incidence Analysis In Accordance With National Conference Of State Legislature Principles For High-quality Tax Systems.

Impact

The implementation of HB05550 is poised to foster a higher degree of accountability and transparency in the state's tax system. By evaluating how well the existing tax infrastructure meets established principles, the state aims to improve equity, reduce regressivity, and diversify revenue sources. Moreover, this periodic analysis can provide vital insights that inform future tax policy changes, potentially leading to a more balanced and fair taxation approach that considers the varying needs of local governments and communities.

Summary

House Bill 05550 is an Act concerning a tax incidence analysis, which mandates that the Office of Fiscal Analysis conduct a comprehensive evaluation of the state's tax infrastructure every five years, starting from fiscal year 2012. The bill is rooted in principles established by the National Conference of State Legislatures for high-quality tax systems, focusing on aspects such as alignment with strategic goals, stability, equity, and complementarity to local revenue systems. This structured approach aims to create a more robust and fair tax framework across the state.

Contention

While the bill is expected to provide valuable insights and improve the overall tax landscape, there may be concerns regarding its fiscal implications and the necessity for such analyses. Some legislators may argue about the cost associated with conducting these evaluations every five years, weighing the benefits of enhanced analysis against potential budget constraints. Furthermore, the effective use of the data obtained from such analyses could spark debates about necessary reforms and adjustments to the current tax code, especially among stakeholders who may be affected by changes in taxation policies.