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Bill

SB 104

AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

2026 Regular Session Introduced by Eleni DeGraw and 9 co-sponsors

Connecticut proposes adding a surcharge tax on capital gains income to increase state revenue while potentially affecting investment behavior and wealth-building decisions.

PUBLIC HEARING 0227
#capitalgainsanddividendstax
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Bill Summary · SB 104

Legislative bill overview

SB 104 proposes establishing a surcharge on capital gains income in Connecticut, creating an additional tax layer on investment profits beyond existing state income tax. The bill has been referred to the Joint Committee on Finance, Revenue and Bonding and is undergoing public hearing consideration.

Why is this important

Capital gains taxes directly affect investment returns for individuals and institutional investors, potentially influencing investment decisions and wealth accumulation patterns. Connecticut's tax competitiveness relative to neighboring states and broader economic growth could be affected by this policy change, while revenues generated could fund state priorities.

Potential points of contention

  • Economic impact on investment: Critics may argue a capital gains surcharge discourages investment and entrepreneurship in the state, while supporters contend it targets wealth concentration fairly
  • Competitiveness with neighboring states: Massachusetts, New York, and other neighbors have different capital gains tax structures; Connecticut's relative attractiveness to investors and high-net-worth individuals could shift
  • Revenue generation versus compliance: Projections of tax revenue depend on behavioral assumptions—whether investors relocate, reduce trading, or restructure holdings to avoid the surcharge

Compiled from official sources — confirm details with the bill’s official record.

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