A Connecticut nonprofit is again urging lawmakers to create a fair tax system for working and middle class families by increasing taxes on millionaires and billionaires.
Patrick O’Brien, with Connecticut Voices for Children, says the tax system in Connecticut is more regressive than neighboring states including New York, New Jersey and Rhode Island.
That’s why his group would like a wealth tax.
“For wage income, Connecticut could create two additional personal income brackets: 7.99% above one million and 8.49% above 5 million.”
O’Brien says that would generate about $260 million a year. He says a similar rate increase on capital gains would bring in another $240 million a year.
He says studies show that the state would not lose money if a tax increase caused some wealthy people to leave the state.
“For example, a 2019 study by the Federal Reserve Bank of San Francisco finds that in Connecticut in particular the revenue benefit of having an estate tax is 26% larger than the revenue cost due to any relocation.”
O’Brien spoke at a budget forum at the state Capitol, as lawmakers prepare for a new legislative session in February.
Governor Ned Lamont has said he does not support a new wealth tax.