Connecticut relies heavily on income tax revenue, particularly from higher earners and small business owners. Raising the top rate may sound targeted, but it can affect investment decisions, business growth, and whether individuals choose to live and work in the state. Higher rates can also make revenue more volatile if taxpayers change how or when they realize income.

At a time when residents are dealing with high housing costs, energy bills, and overall cost of living pressures, lawmakers should focus on policies that grow the economy and strengthen competitiveness. Increasing the top income tax rate risks sending the wrong message to employers, entrepreneurs, and families considering Connecticut’s future.