"Who Pays?" The Unfairness of Connecticut's State and Local Tax System (April 2009)

Douglas Hall, Ph.D.

Connecticut's wealthiest residents pay much less of their income in state and local taxes than do the state's middle-income and poor families. After federal income tax deductions for state income and property taxes, the wealthiest 1% of Connecticut's families (with average income in 2007 of $4.2 million) paid only 4.5% of their income in state and local taxes. This was less than half the share of income paid in these taxes by the state's middle-income families (9.3% of their average income of $55,000) and the poorest 20% of families (12.1% of their average income of $12,200). Low- and middle-income families pay a relatively larger share of their incomes in sales and property taxes, while higher income families pay a larger share of their incomes in income tax. In total, however, the state's wealthiest families pay a much smaller share of their income in state and local taxes than do its middle and lower income families.

This report calls for a more progressive income tax to help ensure that those who can best afford it contribute a greater share toward closing the state budget deficit and avoiding damaging budget cuts. (April 2009)

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[1] Full Report (919.41K)
[2] Press Release (84.73K)