Capitol Report: Proposal looks to replace state income tax with payroll tax

Capitol Report

Eliminate the state income tax? There’s a new proposal being floated at the State Capitol that would do just that and replace it with a payroll tax.

Anyone making less than $200,000, or $400,000 for couples, would have a five percent payroll deduction from their paycheck.

Related Content: Proposal would eliminate Connecticut income tax for most, replace it with payroll tax

The benefit?

You would pay less federal taxes.

People making over that amount would still pay a state income tax, but the plan eliminates a huge issue dividing Democrats: The capital gains tax on wealthy.

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