The proposed bill, General Assembly Proposed Bill No. 742, seeks 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 aims to impose this surcharge specifically on the net gain from the sale or exchange of capital assets, thereby targeting higher-income individuals who benefit from capital gains. The introduction of this surcharge is intended to generate additional revenue for the state while addressing income inequality by taxing wealth accumulation more heavily among affluent taxpayers.