Connecticut's Wealthiest Look To Leave State As Tax Rates Climb

HARTFORD, Conn. (CBSNewYork) -- More and more of Connecticut's wealthiest are looking to leave the state -- and one local lawmaker believes higher taxes are to blame.

According to State Senate Minority Leader Len Fasano, the new Connecticut budges includes the second-largest tax hike in state history -- with little or no relief anticipated.

"People remaining in the state will face an unknown, Fasano told WCBS 880's Fran Schneidau reported. "We don't know how bad it's going to get." 

The first clue will come at the end of April, when the first estimated tax payments are made, Fasano said.

Two billionaires have recently left Connecticut for warmer -- and cheaper -- locales. The Hartford Courant reports that entrepreneur Thomas Peterffy and food industry executive C. Dean Metropoulos both left the state for Palm Beach, leaving the state with 13 billionaires.

According to Fasano, as more high-income residents leave, less people will pay taxes, forcing the government to continue to raise taxes to cover the costs.

The tax on Connecticut's wealthiest has risen to four percent over the last several years, Fasano noted.

Connecticut passed their Democratic-led $40.3 billion budget in June 2015. The budget was placed under criticism throughout the legislative process, with opponents raising questions and concerns over the $1.5 billion in tax increases included in the two-year budget plan.

General Electric recently announced they would be moving their corporate headquarters from Connecticut to Boston, after citing the state's proposed tax legislation as a concern for the company.

Health insurance giant Aetna voiced similar concerns after the budget was passed.