AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

SB 742 would impose a new 1.75% surcharge on capital gains for Connecticut taxpayers with adjusted gross income meeting the threshold for the state's highest income tax rates (as defined in section 12-700). This surcharge applies specifically to profits from selling investments like stocks or real estate, directly affecting high-income earners who already pay the top marginal tax rates. The bill amends tax law to add this surcharge to existing capital gains tax calculations for qualifying taxpayers. It does not change the base tax rates or thresholds for income brackets.