AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

HB 5771 would impose a 5% surcharge on net gains from selling investments (like stocks or property) and on dividend/interest income for Connecticut taxpayers with adjusted gross income meeting the threshold for the state's highest tax rate. It directly affects high-income earners who already pay Connecticut's top marginal tax rate. The surcharge applies only to investment gains and income above the income level defined in existing law for the top tax bracket. This would increase tax liability specifically on investment earnings for this income group, without changing other tax rates or brackets.