Connecticut House Bill HB05673

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Concerning The Reformation Of Certain Taxes And Tax Equity.

Impact

If enacted, HB 05673 would amend existing tax statutes to implement new marginal tax rates based on income thresholds and introduce a statewide property tax on expensive real properties. Additionally, the bill aims to boost tax compliance and revenue collection by mandating the hiring of more auditors and wage enforcement agents, which is expected to close the state's tax gap significantly. These measures are designed to improve financial equity while ensuring adequate funding for public services that support the community.

Summary

House Bill 05673 seeks to reform various tax measures in Connecticut, emphasizing tax equity and relief for middle-income taxpayers and seniors. The bill proposes a series of changes to the state's tax structure, including a new surcharge on high-income earners, a tax on digital advertising revenues, and enhanced property tax credits for individuals over sixty-five. The overarching goal is the redistribution of tax burdens while increasing revenue collection for state services.

Contention

Notable points of contention surrounding HB 05673 arise primarily from its implications for business taxation and the potential impact on high-income residents. Proponents argue that the bill addresses long-standing inequities in the tax system and provides much-needed relief to struggling populations, particularly seniors. Critics, on the other hand, warn that increased taxation on businesses, especially the newly introduced tax on digital advertising, could discourage economic growth and innovation. Furthermore, the additional taxes imposed on high earners may lead to increased tax evasion or relocation of wealthy individuals outside the state.