Connecticut Voices for Children: Connecticut’s Unified Gift and Estate Tax: A Key Source of Revenue That Makes Connecticut’s Tax System More Fair
ITEP Work in ActionThe Governor has proposed eliminating the unified gift and estate tax. As part of her most recent package of proposed budget changes to balance the State Fiscal Year 2010-2011 (SFY 10-11) budgets, the Governor has proposed eliminating the “inheritance tax” effective January 2010. 1 This repeal not only would reduce General Fund revenues by $85 million in SFY 10 and by $177 million in SFY 11 according to the Office of Policy and Management. Repeal of the tax also would make our state tax code more regressive, as it falls exclusively on the state’s wealthiest residents.