Press Releases
05/08/2018
Gov. Malloy Applauds Final Legislative Passage of Bill to Protect Connecticut Residents from Negative Effects of Trump’s Tax Law
(HARTFORD, CT) – Governor Dannel P. Malloy is hailing the Connecticut House of Representatives for voting 148-0 to give final passage to legislation originally proposed by the Governor that will protect Connecticut residents and employers from the negative effects of the federal Republican tax law that was adopted by Congress late last year and signed by President Trump.
Under the federal law, hundreds of thousands of residents will see a tax increase, property values could decrease significantly, and 13 million more Americans will become uninsured. Currently, 40 percent of Connecticut residents claim the state and local tax (SALT) deduction, averaging $18,939.72 and putting the state second in the country (behind New York’s average of $21,038.02). In total, the Republican tax bill is expected affect 171,118 taxpayers claiming $10.330 billion in federal tax deductions.
“The disastrous Trump tax law is already hurting middle class Connecticut residents and small businesses,” Governor Malloy said. “Let’s be clear about what the president’s backwards legislation really does. Eighty-three percent of the benefits from this law go to the top one percent, while taxes actually increase for many middle class Connecticut families – all at the same time it causes our federal deficit to explode by $1.5 trillion. It is becoming clearer every day that the Republican law is nothing more than a massive giveaway for the very wealthy while the middle class pick up the tab. The legislation passed today protects Connecticut residents from unfair tax increase brought on by the Trump administration’s reckless agenda.”
Specifically, the bill does the following:
- A new revenue-neutral tax on pass-through entities, fully offset by a personal income tax credit, will prevent Connecticut’s small business owners from being targeted by the federal tax law.
- Allowing municipalities to create charitable organizations that support town services, in conjunction with a local property tax credit, will allow our cities and towns to continue to provide services while reducing individuals’ federal taxes.
- To avoid a General Fund revenue loss, Connecticut will not adopt federal tax changes related to accelerated depreciation and asset expensing.
The legislation is Senate Bill 11 – An Act Concerning Connecticut’s Response to Federal Tax Reform. It was approved in the Senate early this morning by a vote of 36-0 and now heads to the Governor’s desk for his signature.
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