AN ACT ESTABLISHING AN ADDITIONAL MARGINAL RATE FOR THE PERSONAL INCOME TAX AND DEDICATING THE REVENUE GENERATED TO CERTAIN PURPOSES.

Plain English Breakdown

The exact distribution of funds among various programs is not detailed in the provided sources, leaving some uncertainty about specific allocations.

New Tax Law for High Earners

This law creates a new tax rate for people who earn more than $1 million per year and uses the money to fund education, child care, transportation improvements, and other public services.

What This Bill Does

• Adds a new tax of at least 4% on income over $1 million for individuals.
• Uses the extra tax money to support schools by providing universal meals and funding construction projects.
• Funds higher education and makes colleges and universities free or less expensive.
• Improves child care services, including better pay for workers and supplies for newborns' parents.
• Repairs and maintains roads, bridges, and public transportation systems.

Who It Names or Affects

• People who earn more than $1 million per year will have to pay the new tax rate.
• Students, families, and communities that benefit from education programs.
• Families using child care services.
• Drivers and transit users who rely on improved roads and public transport.

Terms To Know

Marginal Rate

A tax rate applied only to the portion of income above a certain amount, in this case, $1 million.

Taxable Income

The total income that is subject to taxes after deductions and allowances have been subtracted.

Limits and Unknowns

• It's not clear how much extra money will be collected from the new tax rate.
• Details about how funds are distributed among different programs may vary.
• Implementation of free public transit is subject to further planning and budgeting.

Official Summary Text

To (1) establish an additional marginal rate for the personal income tax of at least four per cent on the portion of an individual's taxable income in excess of one million dollars, and (2) dedicate the revenue generated from such tax to education; universal school meals; school construction, repair, capital projects and expenditures; higher education and free public colleges and universities; child care; higher wages for child care workers; baby supplies for parents and guardians of newborn infants; the repair and maintenance of, and access to, roads, bridges and public transportation; and free public transit.

Current Bill Text

LCO No. 870 1 of 2

General Assembly Proposed Bill No. 5117
February Session, 2026 LCO No. 870

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. GAUTHIER, 38th Dist.

AN ACT ESTABLISHING AN ADDITIONAL MARGINAL RATE FOR THE
PERSONAL INCOME TAX AND DEDICATING THE REVENUE
GENERATED TO CERTAIN PURPOSES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 229 of the general statutes be amended to (1) establish 1
an additional marginal rate for the personal income tax of at least four 2
per cent on the portion of an individual's taxable income in excess of one 3
million dollars, and (2) dedicate the revenue generated from such tax to 4
education; universal school meals; school construction, repair, capital 5
projects and expenditures; higher education and free public colleges and 6
universities; child care; higher wages for child care workers; baby 7
supplies for parents and guardians of newborn infants; the repair and 8
maintenance of, and access to, roads, bridges and public transportation; 9
and free public transit. 10
Statement of Purpose:
To (1) establish an additional marginal rate for the personal income tax
of at least four per cent on the portion of an individual's taxable income
in excess of one million dollars, and (2) dedicate the revenue generated
Proposed Bill No. 5117

LCO No. 870 2 of 2

from such tax to education; universal school meals; school construction,
repair, capital projects and expenditures; higher education and free
public colleges and universities; child care; higher wages for child care
workers; baby supplies for parents and g uardians of newborn infants;
the repair and maintenance of, and access to, roads, bridges and public
transportation; and free public transit.