Got an extra $200 you can spare?

If you're single and making $50,000 or married and taking in twice as much, that's the extra amount the state will be withholding from your pay over a five-month period starting Aug. 1.

High-income earners will be hit much harder. For those who earn $1 million a year, the extra tax will be up to $17,400 spread out over the last few months of the year; those earning $250,000 will pay up to $2,950 on top of their normal withholding, according to figures released by the state Office of Policy and Management.

Connecticut's income tax increase, approved by the legislature last spring, is going into effect next month. But the tax is retroactive to Jan. 1, meaning people have only five months to pay a year's worth of a tax increase.

"The tax by itself may not have been all that noticeable, but when you double the increase in the tax (by implementing it over five months rather than a full year), that might well come to people's attention and have a sort of chilling effect on their spending behavior," said Steven P. Lanza, a University of Connecticut economist and managing editor of the quarterly Connecticut Economy.

Peter Gioia, a vice president for the Connecticut Business & Industry Association, added that the catch-up provision of the income tax increase hasn't hit many people's radar screens, meaning the extra withholding amounts starting in August will be a shock to most residents. And the reduced spending power of state consumers combined with lower income for business people paying personal income taxes could hurt Connecticut's economy, he said.

"It's enough so that (business people) might have some hesitation in expansion plans," Gioia said.

The biggest effect will be on high-income earners. OPM said people earning $250,000 or more in annual income would pay nearly two-thirds of the tax, while those earning $50,000 or less would contribute only 6.4 percent of the new income tax revenue.

Number of brackets doubled

The state Department of Revenue Services has developed new withholding tables so employers know precisely how much to take out of their workers' pay. For singles making $50,000 and married couples earning $100,000 a year, the amount works out to nearly $23 a week.

"Sometimes the amount is as little as a $1 increase, especially for taxpayers under the $50,000 threshold," said Revenue Department spokeswoman Sarah Kaufman.

Kaufman said the extra withholding actually protects taxpayers from having too little taken out of their wages, with the possibility of penalties being imposed when taxes are filed next year.

"You don't want to end the year owing over $1,000 on taxes," she said. "That's when interest kicks in."

The income tax change doubles the number of brackets for Connecticut wage earners, from three to six. Of the state's 1.4 million tax filers, about 1 million will be paying more taxes as a result of the new brackets, which range from a low of 3 percent to a high of 6.7 percent.

The income tax increase comes a month after several other state taxes kicked in, including the increase and expansion of the sales levy to include items not previously taxed, such as spa and salon services.

The income tax changes are expected to raise $625 million for state government as Gov. Dannel P. Malloy's administration tries to close a large budget gap and replenish Connecticut's rainy-day fund.

Residents could leave state

Gioia of CBIA worries about the effects on business people, especially sole proprietors and entrepreneurs who could operate in other states just as easily as in Connecticut. Businesses, he said, could hold off on adding to their payrolls or bring operations elsewhere and leave Connecticut's economy in trouble.

Wealthy residents also could claim residence in other states, avoiding the Connecticut tax increase.

"These are folks that are not without options," said Lanza, the UConn economist.

The tax hike will be most painful during its first five months, when wages are being withheld at more than twice the amount that will be deducted next year, Lanza said.

"Next year, it will be reduced, and it would look like a tax cut," he added.

Over the next five months, however, the amounts being taken out of 1 million pockets could cause people to hold off on major purchases, he said, slowing the economy at a time when some experts are concerned about a potential double-dip recession.

"You're taking away from potential demand that would be helpful to keep the economy moving," Lanza said.

Gioia points to the timing of this particular tax increase as being a major irritant to everyone.

"A lot of people get raises this time of the year," he said. "They're going to see their July raise and look at what is being taken out in August and say, 'What the heck happened?'"

l.howard@theday.com

Tax increase at a glance

How many people are estimated to fall into each state income tax bracket?

3% - 200,000

5% - 800,000

5.5%v300,000

6.0% - 75,000

6.5%v9,000

6.7% - 20,000

Source: Office of Policy and Management, based on 2009 data from Department of Revenue ServicesExamples of income tax withholding increases coming Aug. 1, based on adjusted gross income:Single filers$50,000 - $200$100,000 - $605$150,000 - $950$250,000 - $2,950$500,000 - $8,700$1,000,000 - $9,700Joint filers$50,000 - $200$100,000 - $200$150,000 - $825$250,000 - $1,400$500,000 - $5,900$1,000,000 - $17,400Source: State Office of Policy and Management