What eaxctly is Dannel Malloy's "millionaire tax?"

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Guys! If you are wondering What exactly is Dannel Malloy's "millionaire tax?", Here is a straight answer

Millionaire tax refers to imposing the law to pay extra taxes for the people who earn more than $1 million a year. The law, however, is not easy to implement. It requires a change in the state’s constitution and requires approval from at least 50 lawmakers. Although the result can be over a billion dollars addition in the revenue, it will heavily discourage those people who are earning more as they have a significant chunk of their income cut off.

 

With Layoffs as high as 643, it seems the labor unions are standing their ground declining to revisit the contracts they rewrote in Governor Dannel Malloy’s first term. The union is demanding for lawmakers that would impose more taxes on the state’s wealthiest to cope with the State’s growing budget deficit.

This 60-year-old governor of Connecticut is finding it hard to get along with the labor unions it seems. The problem is that, if the state’s wealthiest are demotivated then it will decrease their productivity which can further lead to a further deficit.

The new budget adjustment will take effect from July 1st but Malloy and majority Democrats agree that the newly enforced alteration will not raise the tax bar for the rich.

Although we may believe that the labor union’s statement is reasonable, one may also agree that the disparity between the rich and the poor is what has kept the country and the state as it is. Unlike the underdeveloped and poor countries, the rich-poor gap is not so significant so the democrats believe that the new law is unnecessary.