Connecticut Senate Bill SB00663

Connecticut 2013 Regular Session

• Introduced: 1/25/13
• Refer: 1/25/13

Caption

An Act Concerning The Top Marginal Income Tax Rate.

Impact

If enacted, SB00663 will amend chapter 229 of the general statutes, directly impacting the income tax laws applicable to high-income earners in Connecticut. This adjustment is expected to generate additional revenue for the state, which can be allocated towards state services and resources. However, the bill's passage could also lead to discussions regarding the potential effects on high-income residents, many of whom may seek to relocate to states with more favorable tax environments. The expected revenue generated from this increase could serve as a pivotal resource in addressing the state's budgetary challenges.

Summary

SB00663 proposes an increase in the top marginal income tax rate in Connecticut from 6.7% to 6.9%. The bill aims to adjust the state's revenue structure to address funding needs for various state programs. Proponents argue that the modest increase in income tax for high earners will provide much-needed revenue for essential services, particularly in education and infrastructure, which have been underfunded in recent years. The introduction of this bill highlights the ongoing discussions surrounding fiscal responsibility and the equitable distribution of tax burdens within the state.

Contention

The bill has faced opposition primarily from tax critics and some business groups who argue that raising the income tax rate for high earners may discourage economic growth and investment within the state. Critics suggest that an increased tax burden may lead individuals to move their businesses or residence to lower-tax states. Supporters counter that the increase is necessary for the well-being of the state's citizens and the maintenance of public programs. The discussions revolving around SB00663 underscore the tension between tax policy aimed at revenue generation versus policies that foster a business-friendly environment.