Connecticut Senate Bill SB00419

Connecticut 2017 Regular Session

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

Caption

An Act Phasing Out The Estate Tax Over Five Years.

Impact

If passed, SB00419 would have significant implications for state revenue, as estate taxes contribute to the state budget. This reduction could result in a notable decrease in funds available for public services such as education and healthcare, which are partially funded by these taxes. Advocates for the bill argue that a lower estate tax could incentivize wealthier individuals to remain in the state, potentially enhancing economic growth and investment in local businesses.

Summary

SB00419, introduced by Senator Logan, proposes to phase out the estate tax in Connecticut over a five-year period. The bill outlines a systematic reduction of the estate tax by eliminating twenty percent of the tax owed each year until it is fully abolished. The goal of this legislation is to relieve the financial burden on estates and provide greater flexibility for financial planning for families and individuals contemplating the transfer of wealth after death. The modification aims to enhance the state’s attractiveness to affluent residents considering relocation or wealth retention in Connecticut.

Contention

Opponents of the bill raise concerns regarding the equity of tax policy and the potential loss of vital revenue for public services. They argue that phasing out the estate tax disproportionately benefits wealthier individuals and risks widening the gap between the rich and poor. This perspective emphasizes the importance of maintaining progressive taxation systems that ensure those with greater financial means contribute adequately to state resources. Additionally, discussions around the bill may bring to light broader socio-economic issues related to wealth distribution in Connecticut.