Connecticut Senate Bill SB00128

Connecticut 2023 Regular Session

• Introduced: 1/13/23
• Refer: 1/13/23

Caption

An Act Establishing A Cap On The Aggregate Amount Of Personal Income Tax Revenue The State May Collect.

Impact

If enacted, SB00128 would significantly affect how the state manages its income tax revenues, compelling it to adjust its financial planning and budget strategies. By setting this cap, the state would be limited in its ability to increase personal income tax rates or pursue additional forms of taxation that could push revenues above the established threshold. Such a measure could alter funding allocations for various public services that rely on stable or increasing tax revenue, raising questions about the long-term sustainability of essential programs.

Summary

SB00128 proposes an important change to the state's personal income tax framework by establishing a cap on the aggregate amount of income tax revenue that can be collected. The bill mandates that any revenue collected beyond this cap must be refunded to taxpayers on a pro rata basis. This legislation is aimed at limiting state revenue collection in a way that could potentially benefit taxpayers financially by ensuring they do not pay more in taxes than the set cap allows. Advocates of the bill argue that it promotes fiscal responsibility and ensures that the state's tax policies are not overly burdensome on its residents.

Contention

While the bill has garnered support from advocates for lower taxes, it has also drawn criticism from those who fear it could weaken the state’s ability to fund critical services. Opponents argue that capping tax revenue might lead to insufficient funding for education, healthcare, and public safety, potentially harming those reliant on such services. There are concerns that the refund mechanism may not sufficiently compensate for future increases in demand for state services, raising issues about the balance between fiscal responsibility and community needs.