Taxing where the money is raises revenues.
They underestimated the number and wealth of their wealthy.
“a billion a year” … maybe. It brought in $1.5B in the first year, and then they get used to spending an extra $1.5B a year. But what happens if it only brings in $1B in the second year, and then perhaps $750M in the third year? And maybe $500M in the 6th year.
CT just lowered taxes on lower incomes joint returns below $40k, EITC was raised from 30.5% to 40%, and taxes on retirement income were lowered up to incomes of $100k single filer and $150k joint return.
Because guess what? Billionaires MOVE away from taxes like this. One of the reasons houses around me - across the border - have continued escalating in price.
Another really bad idea foisted by corrupt politicians. A likely outcome is they’ll quietly retire the tax in a few years, similar to other really bad ideas like the boat luxury tax that drove boatmakers out of business.