Connecticut House Bill HB05710

Connecticut 2011 Regular Session

• Introduced: 1/21/11
• Refer: 1/21/11

Caption

An Act Concerning The State Income Tax Treatment Of Federal Tax Cuts.

Impact

The implications of HB 05710 are significant, as it targets the wealthiest individuals to help stabilize state revenue in light of reduced federal support. This amendment would theoretically derive more funds from those who can most afford it, thereby potentially offsetting budget deficits that arise from decreased federal contributions to state programs. Proponents argue that this measure is essential for maintaining the funding necessary for vital state services without shifting the burden onto lower-income residents.

Summary

House Bill 05710 addresses the state income tax implications of recent federal tax cuts, particularly focusing on high-income earners. The bill proposes to amend chapter 229 of the Connecticut general statutes to adjust personal income tax rates. Specifically, it aims to impose an additional tax on the top one percent of earners in the state to capture the financial differences in their federal tax liabilities, should the tax cuts not have been extended. The intention is to mitigate the loss of federal funding which would affect crucial state services, including education.

Contention

The bill is likely to face opposition from various stakeholders, particularly from those who argue that increasing taxes on the wealthy could lead to a stigma against high earners and potentially drive them out of the state. Critics may claim that this approach places too much responsibility on a small demographic and overlooks broader economic implications. As such, the discourse surrounding HB 05710 will revolve around balancing fiscal needs against the economic climate and resident sentiments regarding taxation.