Connecticut lawmakers propose new income tax rates for high earners

Connecticut's House Bill 7272, introduced on April 9, 2025, aims to reform the state's income tax structure, particularly targeting high-income earners. The bill proposes a tiered tax increase for individuals with adjusted gross incomes exceeding $210,000, with escalating rates for those earning above $400,000 and $1 million. This initiative seeks to address income inequality and generate additional revenue for state programs.

Key provisions of the bill include a $50 surcharge for every $10,000 over $210,000, capped at $500, and a more substantial $180 surcharge for incomes exceeding $400,000, with a maximum of $5,400. For those earning over $1 million, the bill introduces a $100 surcharge per $10,000, capped at $900. These changes are designed to ensure that wealthier residents contribute a fairer share to state finances.

The introduction of House Bill 7272 has sparked notable debates among lawmakers and constituents. Proponents argue that the bill is a necessary step toward addressing the growing wealth gap in Connecticut, while opponents express concerns about the potential impact on high-income earners and the state's overall economic climate. Critics warn that increased taxes could drive affluent residents out of the state, potentially harming local businesses and reducing overall tax revenue.

Economically, the bill could provide significant funding for essential services, including education and healthcare, which have faced budget constraints. Socially, it aims to alleviate some of the financial burdens on lower and middle-income families by redistributing wealth more equitably.

As the bill progresses through the legislative process, its implications could reshape Connecticut's tax landscape. Experts suggest that if passed, it may set a precedent for other states considering similar tax reforms. The outcome of House Bill 7272 will be closely monitored, as it could influence future discussions on taxation and economic policy in Connecticut and beyond.