Fewer than 30,000 rich taxpayers to pay top new state rates
HARTFORD — Higher state income taxes have kicked in for a few thousand of Connecticut’s wealthiest taxpayers.
Senate President Martin Looney is confident the new rates will generate nearly $290 million in revenue.
But Sen. L. Scott Frantz, the ranking Republican on the legislature’s Finance, Revenue and Bonding Committee, says capital gains that fuel much of the tax revenue from Connecticut’s wealthiest will decline if Wall Street’s six-year bull market winds down.
New tax withholding schedules were released this month to reflect the increase in the previous top income tax rate to 6.9 percent from 6.7 percent and a new top rate of 6.99 percent enacted by Gov. Dan Malloy and the legislature.
In 2013, about 30,000 taxpayers earning from $250,000 to more than $1 million annually qualified for the two top rates.