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Connecticut's Wealthiest Pay Smallest Share of Their Income in Taxes

Alan Cleaver
/
Creative Commons
Wade Gibson said he's hopeful Connecticut's tax study panel will come up with ways to make the tax system more equitable.

Connecticut's wealthiest residents pay a smaller share of their income in taxes than low- and middle-income households, according to a new report from the Connecticut Department of Revenue Services.

The report reads like a sliding scale of tax burden. The state's wealthiest pay eight percent of their income in taxes, and middle-income households pay 15 percent, while the state's low-income families pay a whopping 27 percent of their income in taxes.

The report also showed that low-income families pay 15 percent of their income in property taxes, compared to the wealthy, who pay two percent. So why the disparity?

"Poor people tend to live in cities at higher property tax rates than wealthy places like Greenwich," said Wade Gibson, director of the Fiscal Policy Center at Connecticut Voices For Children. "Services tend to be more responsive to people than buildings, and so this leads to a situation where the cities end up having a higher tax rate than the suburbs to provide the same services."

Gibson said he's hopeful Connecticut's tax study panel will come up with ways to make the tax system more equitable, but they aren't expected to offer recommendations for another year.

In the meantime, Connecticut Voices for Children recommends that lawmakers restore the Earned Income Tax Credit, which was reduced in 2013, and create a dependent exemption, which would allow parent and caregivers to deduct $2,000 of income for each dependent.

Ray Hardman is Connecticut Public’s Arts and Culture Reporter. He is the host of CPTV’s Emmy-nominated original series Where Art Thou? Listeners to Connecticut Public Radio may know Ray as the local voice of Morning Edition, and later of All Things Considered.

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SOMOS CONNECTICUT es una iniciativa de Connecticut Public, la emisora local de NPR y PBS del estado, que busca elevar nuestras historias latinas y expandir programación que alza y informa nuestras comunidades latinas locales. Visita CTPublic.org/latino para más reportajes y recursos. Para noticias, suscríbase a nuestro boletín informativo en ctpublic.org/newsletters.

The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.

Connecticut Public’s journalism is made possible, in part by funding from Jeffrey Hoffman and Robert Jaeger.