Proposed Bill No. 5113, introduced in the General Assembly, seeks to amend the general statutes to address tax rates and funding for various initiatives. The bill proposes an increase in the highest marginal rate of the personal income tax by one percent for taxpayers with a Connecticut adjusted gross income over one million dollars, and by two percent for those with an income over two million dollars. Additionally, the bill introduces a four percent surcharge on the net gain from the sale or exchange of capital assets. The proposed changes include insertions regarding the tax rate increases and the capital gains surcharge.

The revenue generated from these tax increases and the surcharge is designated for specific purposes. It is intended to fund a child tax credit of six hundred dollars per dependent child, establish a mill rate cap of 35 mills on municipalities and provide reimbursements to municipalities for revenue losses resulting from this cap. Furthermore, the bill aims to support the debt-free community college program and public institutions of higher education in the state. The statement of purpose for the bill clarifies that the intent is to raise certain personal income tax marginal rates and establish a capital gains surcharge to support these child-related initiatives, municipal financial stability, and higher education programs and institutions.