Effective Jan. 1, 2011 [but passed only a few weeks ago, which is why this email even exists], the State of Connecticut increased the personal income tax rates for certain earning brackets. Beginning Aug. 1, [the CT company]
is required to withhold taxes due on your earnings at the new higher rates, as well as collect the back-taxes due on your earnings from Jan. 1 to July 31, 2011 [ex post facto!]. This additional withholding amount will be spread out evenly over the remaining pay periods for 2011 and will be reflected in your pay stubs.The following provides more details about the income tax changes:· New and Increased Marginal Tax Rates
The number of tax brackets has increased from three to six. The new brackets are 3%, 5%, 5.5%, 6%, 6.5% and 6.7%.
· Phase Out of Lowest Marginal Tax Rate
The 3% tax rate is phased out for taxpayers with Connecticut adjusted gross income:
Over $100,500 filing jointlyOver $56,500 filing singleOver $78,500 filing as head of householdOver $50,250 married filing separatelyIncome previously taxed at the 3% rate will now be taxed at the 5% rate.
This is only the income tax portion. Use tax and other taxes were increased as well. Taxes are now due on previously non-taxed activities. Read the sorry details at ct.gov.
Our state income tax went up ex post facto!
A special note from CT to travelers, vacationers, residents, students, taxi drivers, employers... well, anyone except union members:
Are you ready for the great CT exodus?