Bill > SB00123

This bill proposes to amend Chapter 229 of the general statutes to implement a mechanism for automatically adjusting personal income tax thresholds in line with inflation. By indexing income tax thresholds to the rate of inflation, the bill aims to prevent "bracket creep," a phenomenon where taxpayers are pushed into higher tax brackets due to inflation-driven wage increases, even if their real purchasing power remains unchanged. This means that as the cost of living increases, the income ranges for different tax brackets will be automatically adjusted upward each year to match the inflation rate, ensuring that taxpayers are not unfairly taxed at higher rates simply because their nominal income has increased to keep pace with rising prices. The bill essentially creates a systematic approach to maintaining the real value of income tax thresholds over time, providing more predictable and potentially more equitable tax treatment for individuals.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB00123&which_year=2025