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HB 5153

AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE AND CONCERNING THE USE OF THE REVENUE GENERATED FROM SUCH SURCHARGE.

2025 Regular Session Introduced by Jason Doucette

Connecticut bill establishes capital gains surcharge to fund specified purposes, potentially increasing investment income taxation on state residents and businesses.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#capitalgainsanddividendstax #earlychildhoodeducation
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Bill Summary · HB 5153

Legislative bill overview

HB 5153 proposes establishing a new surcharge on capital gains in Connecticut and dedicates the resulting revenue for specific purposes outlined in the legislation. The bill was recently referred to the Joint Committee on Finance, Revenue and Bonding for review on January 14, 2025. The specific tax rate, exemption thresholds, and designated uses of revenue are not detailed in the available information.

Why is this important

Capital gains surcharges directly affect investment income taxation, potentially impacting Connecticut residents and businesses who earn returns from selling stocks, real estate, or other assets. The revenue generated could significantly influence state budget planning and the funding of specific programs or initiatives. This type of tax policy can influence investment behavior and wealth accumulation patterns in the state.

Potential points of contention

  • Economic competitiveness concerns: Higher capital gains taxes may prompt investors and businesses to relocate to states with lower tax burdens, potentially reducing state revenue despite higher tax rates
  • Regressivity and fairness debate: Whether capital gains taxation disproportionately affects middle-class retirement savings and investment portfolios versus truly wealthy investors
  • Revenue dedication transparency: How the surcharge revenue will be allocated and whether those designated uses represent the best use of taxpayer money compared to general revenue needs

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

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