The proposed bill, General Assembly Proposed Bill No. 742, aims to amend title 12 of the general statutes to introduce a capital gains surcharge. This surcharge will apply to taxpayers whose Connecticut adjusted gross income meets or exceeds the threshold for the highest and second highest marginal tax rates, which are currently set at one percent and seventy-five hundredths percent, respectively.

The bill does not specify any deletions from current law but focuses on the insertion of the new surcharge on net gains from the sale or exchange of capital assets for qualifying taxpayers. The primary purpose of this legislation is to establish a new tax mechanism targeting higher-income individuals, thereby potentially increasing state revenue from capital gains.