Will Connecticut’s wealthiest residents soon see tax increases?

On Behalf of | May 24, 2019 | Income Tax

Connecticut is in the midst of a financial crisis. Some believe that raising taxes on the wealthiest residents would solve this problem. However, some worry that doing so will only cause these residents to pack up and move elsewhere. A plan to increase the tax rates of wealthy residents has been proposed. Only time will tell if it will be put into effect.

According to a recently released article, 10 of the state’s wealthiest residents have reportedly submitted a plan to the Governor and general assembly, outlining what they believe would solve the state’s financial problems. They are suggesting changing the tax brackets for those who make $500,000 or more per year. The tax raises would range from 1% for the lower income earners in this group, to 3% for the top earners. They say this plan would generate roughly $1 billion in desperately needed revenue.

Connecticut residents do already pay an arm and a leg in taxes. Numerous people are leaving the state to live where taxes are not as high. This is one reason why government officials are looking at other alternatives before just approving a tax increase. Some of the state’s wealthy say they are happy to pay a little more in taxes to ease the state’s economic burden and have even cited how a similar plan helped another state overcome its financial crisis. Still, there is a lot to look into before a tax increase can really be looked at as an option.

The state’s wealthiest individuals do already have complex tax issues to deal with every year. A change in tax brackets is not going to help matters. Regardless if these proposed tax increases are passed, Connecticut residents who have difficult tax situations to contend with can turn to an experienced tax attorney for assistance tackling their problems as swiftly as possible.