If Republicans cut taxes for the ultra-rich, Connecticut would protect funding for schools, infrastructure and working class families by raising income tax rates on the wealthiest residents under a proposal announced Thursday by Democratic leaders in the state Senate.
The proposal from Senate President Martin Looney and Majority Leader Bob Duff would leave income tax rates unchanged for the vast majority of Connecticut residents. However, Republican income tax giveaways for the wealthiest Americans would trigger higher state income taxes on joint-filing households earning at least half a million a year.
Connecticut can not afford to do nothing as Republicans slash services and cut taxes for the richest Americans, Looney said.
“Under the last Trump administration, Connecticut’s top 1% saved $1.2 billion in federal taxes, while working families saw crumbs,” Looney said. “If Washington insists on handing billionaires another tax break, we will ensure some of that windfall comes back to the people of Connecticut to help deal with the massive federal cuts we anticipate.”
Looney and Duff’s proposal comes as President Donald Trump and billionaire Elon Musk preside over millions in cuts to Connecticut schools, vital public health programs, public safety initiatives, in addition to a variety of other Connecticut-based programs and organizations.
Meanwhile, Newsweek reported Thursday that as many as 5 million Americans could lose Medicaid coverage under a plan backed by Congressional Republicans.
Duff said Connecticut families should not have to pay the price for the reckless decisions made by Republicans in Washington. The tax proposal would help shield people in Connecticut, he said.
“This is a proactive, conditional measure that protects core services, invests in education and infrastructure, and maintains a level playing field,” Duff said. “If the wealthiest once again get a massive federal tax break, then it cannot be at the expense of hard-working Connecticut residents.”
If Republicans again cut federal taxes for the rich, the proposal would increase the state income tax rate from 6.9% to 7.5% for couples making between $500,000 to $999,999 and individuals making between $250,000 and $499,999. The income tax rate for couples making over $1 million and individuals making over $500,000 would change from 6.99% to 7.99%.
