How Well Do the Governor’s and Finance Committee’s Tax Proposals Ensure an Adequate and More Equitable Revenue System?

To maintain our current level of state services while increasing state investments in education, health care, energy, and other areas, more state revenues are needed. The Finance Committee’s revenue proposal increases income taxes in a more progressive manner than the Governor’s proposal and helps to reduce the regressivity of Connecticut’s overall tax structure by enacting a state Earned Income Tax Credit (EITC). Although the Finance Committee proposal imposes higher taxes on our wealthiest taxpayers, it also is those taxpayers who have benefited most from recent federal tax cuts. A progressive income tax could also help to reduce our reliance on the property tax.