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Connecticut's estate tax only applies to estates worth over $2,000,000. Either that doesn't apply to your parents' estate, or they're probably doing better than
by actsasbuffoon 9y ago
Connecticut's estate tax only applies to estates worth over $2,000,000. Either that doesn't apply to your parents' estate, or they're probably doing better than middle class.
Connecticut's income tax ranges from 3%-6.7%, which is pretty decent. The upper percentage is almost the same as my state's lowest! Admittedly, my state has higher than average income tax rates.
- throwaway2016a 9y agoI misspoke, I should have included sales and property tax. When you take sales tax into consideration Connecticut has a much higher burden than just considering income alone. Edited my post accordingly. > Connecticut's estate tax only applies to estates worth over $2,000,000. Either that doesn't apply to your parents' estate, or they're probably doing better than middle class. There is a third option. He actually saved what the retirement planners recommend you save. Never went on vacations, never bought any luxuries, and was generally very frugal. My father literally put every penny he had past food and shelter into retirement savings... add 60 years of interest, dividends, and market gains and $2M is not so crazy. It also helps that he bought his house for $50k 40 years ago and it is now worth quite a bit more. When he was working he was upper middle class for sure but still firmly in the middle class. He was also upper middle because he worked a blue collar job with plenty of overtime options and literally worked close to 40 hours of overtime a week for 50 years. The truly upper class don't need to work 80 hours a week. Is he typical? No way. Would I even want to lie like that? No way either. But it is how he is able to be effected by estate tax and still be middle class.