Some Lawmakers Struggle With Increasing Taxes On Hedge Fund Industry
HARTFORD, CT — How much can Connecticut increase taxes without forcing more residents to flee the state?
That seemed to be the question raised Tuesday during a public hearing on several proposals to increase revenues to plug a two-year, $3.6 billion budget deficit.
Progressives claim it’s time to increase taxes on the wealthy, such as hedge funds. However, Democratic Gov. Dannel P. Malloy and Republican lawmakers have said that increasing taxes when the economy seems to be stagnant and residents are leaving the state may not serve Connecticut well.
The Finance, Revenue, and Bonding Committee heard from the public Tuesday about a bill that would — depending on which side you agree with — raise more than $500 million annually or cause hundreds of hedge fund executives to flee the state.