How to Win the State vs State Playoffs: Sunset the Connecticut Income Tax

Could the CT income tax be repealed? Betsy McCaughey, the conservative firebrand and wildcard factor in the 2026 gubernatorial race, says it can be done. Once seen as a two-way match between Erin Stewart and Ryan Fazio, the GOP primary has been disrupted by McCaughey and her promise to eliminate the income tax within five years.

From Best to Worst. In 1991, Connecticut—then one of the most prosperous states in the nation—voted in a "temporary" personal income tax. What started as a flat tax of 4.5% has escalated into a top marginal rate of nearly 7%. Many argue that the state's economy has never fully recovered from that decision, transforming the state from a high-growth engine into a stagnant bottom feeder.

Naysayers: It's Fiscal Suicide. Critics, including the Greenwich Time (story here), argue that repeal is a "harebrained" fantasy. The hard math is that personal income taxes are critical to fund the state—they represent nearly half of the $27 billion state budget. Without income tax revenue, the state would be forced to jack up property and sales taxes, shifting the burden onto the middle class. Massive spending cuts would be required that would hurt schools and infrastructure. Finally, the existing Democrat Party supermajority in Hartford remains a formidable block to any such repeal.

McCaughey: Copy Other States.  While sitting Governor Ned Lamont calls the CT economy "resilient," celebrating a recent 5.6% spike in Q3 2025 growth that elevated the state to 4th in the nation for the quarter, McCaughey counters with the state's long-term stagnation. She points out that for decades, CT has languished in 48th place for economic growth averaging between 0.5% and 1% compared to the national average of 2% to 3%. Her plan is to make CT into the "Tax Haven" of the Northeast, attracting business through a calculated phase-out of the income tax. Not just a recycled Republican talking point, her plan is modeled on states such as South Carolina, West Virginia and North Carolina, that use a "Revenue Trigger" mechanism: if General Fund collections exceed a specific benchmark (e.g. 5% growth), the tax rate is automatically reduced by a set increment (e.g. 0.25%) until it hits zero. McCaughey promises that she would veto any legislative attempt to shift the tax burden onto property or sales tax rates.

Get Competitive. Connecticut is no longer competing in a vacuum. There are now nine states with no income tax (including Florida and Texas), and in 2025 alone, 12 states moved to cut their income taxes on the way to eliminating them entirely. IRS migration data confirms that Florida remains the top destination for Connecticut "wealth refugees," taking billions of taxable income with them annually.

Between the Lines: Are you tired of seeing your friends and family leave Connecticut for lower tax, higher growth states? McCaughey is betting that after 35 years of a failed tax experiment, voters are ready to try a model that is already winning in many other states.

Story here