Income Tax Hikes Take Effect in Connecticut
While the state’s tax-hike package has received plenty of attention, however, there still may be a rude awakening for many Connecticut workers. That’s because the income tax increases that are at the center of the package — and which take effect today (August 1) — are retroactive to January . The higher tax rates, in other words, will be applied to money earned before lawmakers voted for the plan.
For Connecticut workers, smaller paychecks will be the result. A couple earning $150,000 a year, for example, will see $47 withheld from each weekly paycheck for the remainder of the year, according to the state Department of Revenue Services. A couple earning $250,000 will see $110 deducted each week.
The higher rates will not affect all workers, only those earning $50,000 or more, according to the Associated Press. In wealthy Connecticut, however, the changes are sure to affect a broad segment of the population — something that minority Republicans are pointing out as the higher rates begin to take hold.
The tax increase package “represents a change in life as we know it in Connecticut,” Larry Cafero, the Republican leader in the state House, said at the conclusion of the legislative session in June . “Most people don’t realize that, but they will.”
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