Bill > HB05771

This bill establishes a new 5% surcharge on capital gains, dividends, and interest income for high-income taxpayers in Connecticut. Specifically, the surcharge will apply to individuals whose Connecticut adjusted gross income (AGI) meets or exceeds the threshold for the highest marginal tax rate as defined in section 12-700 of the state's general statutes. By targeting taxpayers with higher incomes, the bill aims to generate additional revenue by imposing an extra tax on investment income for those in the top income bracket. The surcharge would be applied to net gains from the sale or exchange of capital assets (such as stocks, bonds, or real estate), as well as dividend and interest income, effectively increasing the tax burden on wealthy residents' investment earnings. This type of legislation is often proposed as a method to create more progressive taxation, where those with higher incomes contribute a larger proportional share of taxes to support state services and programs.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05771&which_year=2025