Taxes & The Impact on Economic Inequality
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Connecticut Ranks #21 In Tax Fairness
From the CT Mirror: Though Connecticut has eased state and municipal tax burdens on the poor and middle class significantly in recent years, it ranks behind 29 other states and the District of Columbia in one key fairness metric, according to a new report from a liberal Washington-based fiscal policy think-tank. The Institute on Taxation and Economic Policy report ranked Connecticut’s tax system the 21st most regressive, meaning the poorest households pay the greatest share of their income and the richest pay the least. It’s one of 44 states with an overall tax system that worsens income inequality, according to ITEP; one of 41 that imposes the lowest rate on the top 1% of earners, and one of 34 that imposes the highest rate on its poorest. But in their 7th periodic “Who Pays” analysis of states’ tax burdens, ITEP analysts cited two areas that legislators and Gov. Ned Lamont recently made more progressive: lower state income tax rates for the middle class and a larger income tax c...