How Connecticut's "Tax On The Rich" Ended: Middle-Class Tax Hikes, Lost Jobs, More Poverty | WHAT REALLY HAPPENED


How Connecticut's "Tax On The Rich" Ended: Middle-Class Tax Hikes, Lost Jobs, More Poverty

In the past 30 years, just one U.S. state has adopted a progressive income tax: Connecticut. It made the switch from a flat income tax in 1996, phasing in the progressive income tax over three years.

The results were disastrous. And they should halt, or at least caution, Illinois lawmakers now pushing to do the same.

Connecticut’s experience is a warning that switching to a progressive income tax will eventually end in a tax hike on Illinois’ struggling middle class, result in fewer jobs – particularly for those on the margins of the labor force – and increase poverty. It will fail to combat inequality or fix the state’s finances.

While Connecticut lawmakers sold the progressive tax as a way to provide middle-class tax relief and reduce property taxes, neither occurred. Instead, everyday taxpayers have been hit with recurring income and property tax hikes.

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