Connecticut House Bill HB05884

Connecticut 2013 Regular Session

• Introduced: 1/24/13
• Refer: 1/24/13

Caption

An Act Concerning Income Tax Rates On Incomes Over One Million Dollars.

Impact

If enacted, the bill would significantly alter the income tax landscape in Connecticut, targeting high-income earners to create a more equitable tax system. Through these adjustments, the state anticipates that the generated revenue would help fund crucial public services and programs, potentially contributing to economic stability. This increase in taxation on the wealthy is positioned as a measure to ensure that those with greater financial resources contribute a fairer share to the state's coffers.

Summary

House Bill 5884 proposes modifications to the state's income tax system by introducing higher tax rates for individuals earning over one million dollars. The bill seeks to increase the tax rate to 6.8% for incomes ranging from one million to two million dollars, and to 8.8% for incomes exceeding two million. This legislative initiative is presented as a response to issues of fairness and equity within the state's tax code, aiming to address the growing disparities in taxation on higher-income earners.

Contention

Despite its intentions, HB 5884 may encounter opposition from various quarters. Critics may argue that increasing taxes on high earners could lead to negative economic consequences, such as migration of wealthier residents and businesses from Connecticut to states with more favorable tax rates. Discussions surrounding the bill could highlight concerns over the potential economic impact on both the state and its upper-income residents, echoing broader national debates about tax policies and income distribution.