While a bill to raise Connecticut’s minimum wage to $15 an hour died in May, legislators may want to consider a new report before resurrecting the idea during the next session.
A Look at Who Pays Connecticut’s Income Tax
by Fergus Cullen, MPA, Executive Director of the Yankee Institute for Public Policy
Published on May 20, 2009 by the Yankee Institute for Public Policy
As Governor M. Jodi Rell and the General Assembly seek to close the existing state budget deficit and adopt a balanced budget for the next fiscal biennium, various proposals call for increasing taxes on the affluent. Several groups argue the wealthy aren’t paying their “fair share” of taxes.
However, a new Yankee Institute study of who pays Connecticut’s state income tax reveals that:
• The top 20 percent of Connecticut income earners – those who make more than $100,000 a year – already pay 80 percent of state income tax receipts.
• The top 6 percent of filers – those over $250,000 – pay half of all state income taxes.
• The top 1.3 percent of taxpayers – those earning more than $1 million – pay 35 percent of total income tax receipts, or more than $2.1 billion in 2007.
The bottom 60 percent of Connecticut taxpayers – those with incomes under about $60,000 – paid less than 10 percent of state income taxes, and the bottom 40 percent of all filers – those with incomes of less than $35,000 – effectively paid no state income taxes.
Paying more for a meal at a restaurant won’t just hurt your wallet, it may also hurt Connecticut’s economy, according to a new study.