Connecticut would lose major revenue if state’s richest residents moved
NEW HAVEN — After crunching numbers on tax and income, the state of Connecticut said it relies on the uber rich population here and does not want it’s top earners to leave the state.
Connecticut could see state revenue numbers go down if some of the richest people in America were to relocate. Our state is home to big time earners, including hedge fund owners and bankers and after tracking quarterly payments of this mega rich group, the state said if they were to relocate the revenue would go down dramatically.
The State Department of Revenue Services said the payments of high net worth taxpayers has a direct effect on revenue. There are a handful of people that live and work in the state who’s combined net worth is more than $40 billion.
The state has its eyes set on this group and watches it closely. It can track revenue from rich people’s taxes. Connecticut is named as one of few states that does this.
Elected officials have said that the high income group of taxpayers has a frightening effect on the state revenue. Lawmakers said that the state should not rely on that tax bracket for income.
There is an example of the state approaching a businessman two years ago. It got word a hedge fund owner was thinking of leaving the state and relocating the business. The state urged him to stay. The unnamed business man ended up moving himself, but keeping the hedge fund based in Connecticut.