Connecticut Taxes
- Capital gains are taxed as regular income, with rates up to 6.99% (Twelfth highest)
- Sales tax rate is 6.35%(Twelfth highest)
- Property tax rate averages 2.14%, (fourth highest)
- Income tax rate varies from 3.00% to 6.99%
The Tax Foundation rates Connecticut #2 on state and local taxes defined a state’s tax burden paid by a state’s residents divided by that state’s share of net national product.
Different ranking methods will give different results. I would put Connecticut somewhere around #5.
Connecticut is a high tax state by any realistic measure. The new proposals are truly wild.
Latest Progressive Tax Schemes
- A “consumption tax” based on income
- An “Equitable Investment Council” to redistribute the money fairly!
Ned Lamont Says No More Taxes
The Wall Street Journal reports Ned Lamont Says No More Taxes
Connecticut used to be the low-tax haven with a quick ride to Manhattan, but decades of tax-and-spend policies have eroded its comparative advantage. Today the state taxes capital gains as regular income, with rates up to 6.99%. State lawmakers now want to add a “surcharge” on high earners, meaning a combined cap-gains rate of 8.99% on single filers making more than $500,000.
This is double taxation atop corporate taxes, and capital gains are not adjusted for inflation. The federal estate tax is 40%, and then throw in Connecticut’s estate tax up to 12%. Financiers are mobile, and estates in many places are taxed at the ultimate low rate of 0%. Add all this up, and you’d have to be high on nutmeg to stick around Connecticut.
The Legislature also wants to create what it bills as a “consumption tax.” People earning more than $500,000 would pay 0.7% of their adjusted gross income. That rate would rise to 1.4% for those earning $2 million, then 1.5% over $13 million. The money would go into a new Equitable Investment Fund, managed by an Equitable Investment Council, which would use it to reduce income inequality, redistribute to certain groups, and so on.
Progressive Ideas Keep Getting Wilder
Progressive ideas like a “consumption tax” based on income and the “Equitable Investment Fund” keep getting wilder and wilder.
The “Equitable Investment Council” would be an extreme Woke foundation slush fund complete with graft and total waste.
Quote of the day: “You’d have to be high on nutmeg to stick around Connecticut.”
Protesters are out in Force
“It’s not a ‘consumption’ tax. It’s just an income tax by another name,” said Governor Lamont.
In response, protesters staged a “die-in” blocking Lamont’s residence.
This is despite the fact that Connecticut’s budget surplus this year is projected to be $470 million.
Its rainy-day fund will hit an all-time high of $4.5 billion. Federal coronavirus relief is bringing $6 billion into the state.
Nonetheless, the legislature demand more taxes.
Progressives always want to raise taxes. Consumption taxes on incomes and Equitable Investment Councils are just two of the latest schemes.
There will be more. Progressive schemes are endless.
Just Say No
Governor Ned Lamont just said no.
But Progressive efforts in Congress led by Elizabeth Warren, AOC, Bernie Sanders, House Speaker Nancy Pelosi, and President Joe Biden are ongoing.
Send a Message!
Send Congress a resounding message in the 2022 midterm elections. Take back the House and send Pelosi and AOC packing.
Enough is enough.
Mish
But let’s be honest, *most* Democrats have gone crazy. There are always exceptions.