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“Mansion Tax” and “Capital Gains Tax” now on the table

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There are a number of self-described “progressive state lawmakers” who have not shied away from saying the Governor’s proposal to extend the sales tax to almost everything is unfair to lower and middle income residents, especially if the state’s higher income residents don’t see any significant tax hikes.

When you sell stock for a higher price than you paid for it, that income is called a capital gain. 

And for the past 28 years in Connecticut, capital gains has been taxed at the very same rate as income from your salary. 

Senate President Pro tem Martin Looney of New Haven now says that in order to make any budget deal more “progressive,”‘ lawmakers must consider a higher tax rate on capital gains.

He added, “A separate tax rate for capital gains income, which is something that has been done in the past and is done in other states, including our neighboring state of Massachusetts.”

Looney also has his eye on high-end real estate.

In some Connecticut communities, there are a lot of ultra luxurious homes, and Looney sees them as another way to accommodate lawmakers who say the state should “tax the rich” more. 

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“To have a so-called ‘mansion tax’ at the state level on very valuable properties,” stated Sen. Looney.

The Speaker of the House said these two taxes must be on the table in the budget discussions ahead, and members of the “Progressive Caucus” say that’s a must. 

“To solve this budget crisis with a fair and equitable budget solution, and that has to include these concepts as part of the conversation,” said Rep. Anne Hughes (D-Easton). 

Rep. Gerry Reyes (D-Waterbury) added, “Our position has always been right along, that the rich can pay a little bit more and still be comfortable in this state.”

The Republican Leader in the House, Rep. Themis Klarides (R-Derby), said that these potential tax hikes will just drive more wealthy residents away.

She added, “When they decide they want to tax mansions and capital gains and cars, is that people that have wealth have options.”

In a statement, the Governor’s office did not rule out these concepts, and simply said, “He will take a hard look at every alternative solution proposed by the legislature.”

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