An Act Eliminating State Taxes That Cost More To Administer Than Is Gained In Revenue.
Impact
If passed, this bill would potentially lead to the elimination of several state taxes that are determined to be more costly to administer than the revenue they generate. The financial implications could be significant, freeing up state resources that could be redirected toward other essential services. There could also be a reduction in the strain on state agencies responsible for tax collection, allowing them to focus on more productive revenue-generating activities.
Summary
House Bill 05487, titled 'An Act Eliminating State Taxes That Cost More To Administer Than Is Gained In Revenue,' aims to streamline the state's tax system by eliminating taxes that are inefficient to collect. The proposal seeks to amend the general statutes to assess the cost-effectiveness of tax collection versus the revenue generated. This bill reflects a growing interest in government efficiency and a more rational approach to taxation, ensuring that the state's resources are utilized effectively.
Contention
The bill may encounter contention regarding which taxes are deemed inefficient. Some lawmakers may advocate for the retention of certain taxes that serve specific purposes, while others may push for broader cuts. There may be concerns about the loss of revenue from the eliminated taxes and how it would affect public services and state budgets. Stakeholders will likely engage in discussions about ensuring that tax reform does not disproportionately affect certain groups of residents.