Even After Tax Increases, Connecticut’s Poor Pay More — Much More

Back • March 14, 2012 • Uncategorized

Despite tax increases under both Gov. Rell and Gov. Malloy, Connecticut’s poorest still pay twice as much of their income in taxes as the wealthiest 1%. According to a recent analysis by Connecticut Voices and the Institute on Taxation and Economic Policy, the bottom 20% — who average $12,700 in income — face an effective rate of 11.2% in state and local taxes. The richest 1% — who average $3,164,200 — pay 5.5%.

Connecticut’s state and local tax code is regressive, taxing people more for being poor and less for being rich. Tax changes over the last several years have reduced this unfairness, but as the graphs show, much work remains to be done.