SB 104 would create a new surcharge on capital gains income for certain taxpayers above set income thresholds. We oppose this bill because it adds another layer of taxation in a state that already has high tax burdens and ongoing affordability challenges.

Capital gains taxes apply to profits from selling investments such as businesses, property, or stocks. Increasing these taxes can discourage investment, entrepreneurship, and long term economic growth. When taxes on investment rise, individuals and businesses may choose to invest or relocate elsewhere, especially in a region where neighboring states compete for residents and jobs.

Revenue from capital gains can also be unpredictable because it depends on market conditions and investment activity. Building new taxes around volatile income sources makes budgeting more uncertain. Connecticut should focus on stable fiscal practices and policies that grow the economy, not measures that risk slowing investment and reducing competitiveness.