Connecticut feels effect of drop in super-rich tax payments
HARTFORD — Connecticut’s state budget is feeling the effects of less income tax revenue from the super-rich.
New figures released last week show tax revenue from the state’s top 100 highest-paying taxpayers declined 45 percent from 2015 to 2016. The drop adds up to a $200 million revenue loss for Connecticut.
Department of Revenue Services Commissioner Kevin Sullivan says these wealthy people are “dramatically less wealthy than they were before.”
That revenue decline has exacerbated Connecticut’s budget woes. The projected deficit for the new fiscal year beginning July 1 has now jumped from about $1.7 billion to $2.3 billion, while the deficit predicted for the second year of the state’s two-year budget is now about $2.7 billion.
Some of the revenue hit is being blamed on changes in the hedge fund industry.