Connecticut House Bill HB05907

Connecticut 2017 Regular Session

• Introduced: 1/19/17
• Refer: 1/19/17

Caption

An Act Restructuring The Estate Tax.

Impact

If enacted, this bill would amend the general statutes related to the estate tax, particularly impacting how family-owned businesses are taxed upon the passing of ownership. The intention behind these changes is to facilitate smoother business transitions within families, which could lead to job preservation and continued economic contributions from these businesses in their communities. Advocates suggest that such reforms could bolster Connecticut's local economies by sustaining small family enterprises and preventing wealthy families from exiting the state.

Summary

House Bill 5907, introduced by Representative O'Dea, aims to restructure the existing estate tax in Connecticut. The primary purpose of this legislative proposal is to assist family-owned businesses in remaining within families by alleviating the financial burdens often associated with estate tax liabilities. The bill seeks to encourage residents to stay in Connecticut rather than relocating to states with more favorable tax environments. By addressing the estate tax, the bill illustrates a potential effort to support local economic stability and family legacies in business.

Contention

While the bill has a clear intention to support families and local businesses, there may be contention surrounding the effectiveness of these tax adjustments. Critics may argue that while assisting select businesses, it could lead to decreased tax revenue for the state, potentially affecting funding for public services. Additionally, there might be discussions around equity among various business types and how the restructured tax might favor certain entities over others, therefore necessitating a careful evaluation of the bill's broader economic implications.