When It Comes To Taxes, We're Almost No. 1 Connecticut

WalletHub's newest report confirms what we, Connecticut residents, already knew and that is, taxes are just too high. Connecticut ranks No. 2 at having the highest tax rates in the country.

Thankfully, Illinois was able to beat us out for this dubious honor of having the highest tax rates in the country. If you're fed up about Connecticut's high taxes, WalletHub suggests you might want to consider moving to Alaska, Delaware, Montana, Wyoming, and Nevada, which have the lowest tax rates in America.

Here's the specific and depressing data concerning Connecticut:

Tax Rates in Connecticut (1=Lowest; 25=Avg.):

• 50th – Overall Effective State & Local Tax Rate
• 24th – Income Tax
• 48th – Real-Estate Tax
• 47th – Vehicle Property Tax
• 19th – Sales & Excise Taxes

After Connecticut, Pennsylvania and New York follow in the rankings of highest tax rates. Connecticut may stand a chance of catching Illinois next year as several new taxes are being considered in the General Assembly as Connecticut tries to find its way out of a multi-billion projected deficit.

Gov. Ned Lamont unveiled his budget proposal to the General Assembly in February and called for a number of new taxes and electronic tolls.

One of the biggest changes Lamont is proposing is taxing services at an equal level to goods. This would include barber shop and beauty salon services, veterinary services, legal, accounting, contractor fees for home renovations, dry cleaning and vehicle trade-ins. This would bring in an estimated $292 million in the first year of the budget and $505 million in the second year. It wouldn't apply to business-to-business transactions, such as legal fees charged to a company.

Here are some other proposed new taxes or increases:

• 25-cent deposit on liquor and wine bottles
• 10-cent tax on plastic grocery bags.
• Tax on nip bottles.
• 1.5-cent tax per ounce on sugar-sweetened beverages ($163.1 million in FY 2021)
• 75 percent tax on electronic-cigarette liquid ($6.7 million)
• Increase hotel tax from 15 to 17 percent.

Eliminating more sales tax exemptions:

• Parking
• Massage therapists
• Horse boarding
• Waste collection
• Repairing boats
• Winter boat storage
• Digital downloads
• Non-prescription drugs
• Newspaper and magazines
• College textbooks
• Child car seats

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WalletHub said it released the report now as "Tax Day looming large and sweeping tax reform passed in recent months, WalletHub today released its 2019 Taxpayer Survey as well as its yearly Tax Rates by State report and accompanying videos in order to help people better understand this confusing time of year."

WalletHub also released results of its 2019 Taxpayer Survey and here are the highlights:

• Fewer than 4 in 10 people are happy with President Trump’s tax reforms. 70% think they benefit the rich more than the middle class.
• 89% of people think the government currently does not spend their tax dollars wisely.
• 31% of people say making a math mistake is their biggest Tax Day fear, edging out not having enough money (28%) at the top of the list.
• 36% of people would move to a different country for a tax-free future. 24% would get an “IRS” tattoo and 15% would take a vow of celibacy.