AN ACT CONCERNING A REFORMATION OF THE STATE TAX SYSTEM.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

That the general statutes be amended to reform the tax system by: (1) Requiring the state to fully fund all costs for local education; (2) requiring municipalities to fund through the property tax and other current local revenue sources all other municipal costs; (3) eliminating all tax expenditures, including deductions, credits and exemptions, whether for income, corporate sales or property tax; (4) adjusting the tax rates for income tax, corporate taxes and sales tax downward to a level that is revenue neutral, i. e., that raise the same amount of revenue currently derived from such taxes prior to the elimination of all tax expenditures; and (5) adjusting the income tax to absorb the additional state costs for education.

Statement of Purpose:

To provide true property tax reform by reducing the property tax through repealing special exemptions; eliminate all tax expenditures, thus reducing the effective tax rate for individuals and business, leading to a better climate for business; substitute the income tax for the property tax as the revenue source for the cost of education as a more equitable tax system and provide an equal educational opportunity for all regardless of the varying degrees of wealth and property values in our communities.