Remember what was said a week ago? That Connecticut has 17 billionaires left? Well, that number is only gonna get smaller. It’s because there’s this secret tax that punishes them for giving their money to anyone that isn’t a government official.
It’s the gift tax. Want to know the funny thing? Connecticut is the only state in the nation with a tax like this.
Darien resident David Delucia wrote a piece to the Hartford Courant that explains why this tax is forcing him to move to another state. He’s also a life long CT resident.
So, here’s what the gift tax does. It basically targets the wealthy who want to give their hard-earned money to their heirs. So, if a person gives more than $14,000, they are hit with a 12 percent gift tax.
And that goes on top of the federal gift tax of 40 percent.
So, basically, if you give $14k to your child in one year, the federal government’s sticky fingers will snatch up $5,600 of it. With Connecticut demanding its fair share, you’ll lose an additional $1,680. So, the kid is left with $6,720.
Sounds fair right? Our government says that’s what paying your fair share means.
So, that’s why the wealthy book it out of the state once they become empty-nesters or reach retirement age. They don’t want their kids to only receive 24 percent of their money.
Yeah, that totally sounds like paying your fair share. The government is reminding me of the age old “two for me, one for you,” golden rule of sharing.
Anyways, Delucia brings up a great point about the gift tax:
“To be the only state that has a gift tax for its extremely wealthy citizens is paramount to erecting a huge sign that reads, “We don’t care if you leave our state. Go!” How much net revenue is raised by the gift tax vs. the loss of tax revenue when your wealthiest residents leave?”
Basically, leaving CT means the wealthy will save millions upon millions to give to their heirs. So, that’s probably why the state is losing so much revenue. Our politicians are literally chasing them away all while screaming how much they need their money to stabilize the budget.
The worst part is, it seems that our government don’t want to hear the wealthy’s concerns. Delucia even tried working something out with his representatives. Numerous times!
“I tried on a number of occasions to reach out to Gov. Dannel P. Malloy’s office, Commissioner of Revenue Services Kevin Sullivan’s office and U.S. Rep. Jim Himes, my local congressman, but no one returns my calls.”
So, our politicians are basically shouting, “shut up and let us take your money.”