Connecticut Democrats Try to Tax the Wealthy Away

Hartford won’t be satisfied until every last millionaire in the state moves to New Hampshire or Florida

By Carol Platt Liebau and Frank Ricci. Ms. Liebau is president of the Yankee Institute. Mr. Ricci is a Yankee Institute fellow and author of “Command Presence.” Excerpts:

"Connecticut is a high income-per-capita state and has one of America’s most burdensome tax systems. It collects $30.9 billion annually in taxes. Yet it has still managed to accumulate one of the highest ratios of debts-per resident of any state in the nation. State officials should look for ways to exercise greater fiscal discipline instead of seeking new ways to tax residents.

As long as income is earned honestly, one state resident making more money than another isn’t a justification for taxing it away. Most millionaires are self-made. Eighty percent of them grew up in families at or below middle-income levels. Only 2% inherited their wealth from their families."

"Connecticut’s politicians should read a recent Boston University study on Massachusetts’s tax policies as a cautionary tale. High income taxes, expensive housing and steep healthcare costs have caused net out-migration to increase by 1,100% since 2013. The state has lost billions in adjusted gross income and hundreds of millions in income tax revenue annually. As remote work and increased mobility provide people with more choices, the out-migration is likely to continue, potentially leading to even greater economic repercussions by 2030.

The Boston University study paints a bleak picture of how Massachusetts is struggling to retain its workforce, especially high-income earners and younger professionals moving to states with lower tax burdens and more affordable living. If this trend continues, Massachusetts could lose up to $1 billion in income taxes every year."