An Act Phasing Out The Estate Tax.
If enacted, SB00133 would significantly alter chapter 217 of the general statutes, which currently governs the estate tax in Connecticut. The bill's phased approach means that the estate tax would not be eliminated immediately, providing a transition period for individuals and families to adjust to the changing tax structure. This change is projected to reduce state revenue from estate taxes, prompting discussions among legislators about alternative revenue sources to support state programs traditionally funded by this tax.
Senate Bill 00133 aims to phase out the estate tax in Connecticut over a five-year period. Introduced by Senator Boucher, the bill is designed to ease the financial burden on individuals and families inheriting wealth, with a stated purpose of promoting fairness and economic opportunity. The gradual elimination of the estate tax will affect how inheritances are taxed and could encourage wealth retention within families, potentially impacting long-term economic dynamics within the state.
The proposal has prompted debates regarding its implications on state revenue and wealth inequality. Supporters argue that phasing out the estate tax will enhance economic mobility and encourage the accumulation of wealth by families, arguing that the existing tax disproportionately impacts those in the middle and upper classes. Critics, however, contend that the elimination of the estate tax will primarily benefit the wealthiest individuals in the state, thereby increasing the financial strain on the state’s budget and potentially resulting in cuts to vital public services that rely on such tax revenues.