Many Connecticut residents could see federal taxes go up

Paul Ryan, Mitch McConnell
FILE - This Sept. 27, 2017 file photo shows Senate Majority Leader Mitch McConnell, R-Ky., center, joining Speaker of the House Paul Ryan, R-Wis., and other GOP lawmakers to talk about the Republicans' proposed rewrite of the tax code for individuals and corporations, at the Capitol in Washington. The Republican tax plan will deliver a swift adrenaline shot to the economy that will send hundreds of billions pouring into federal tax coffers, the Trump administration asserts in a new analysis. House and Senate negotiators are rushing to finalize the tax legislation and deliver the promised measure to President Donald Trump before Christmas. Trump will try on Wednesday, Dec. 13, 2017 to sell the American people on an unpopular GOP tax overhaul. (AP Photo/J. Scott Applewhite, file)

HARTFORD, Conn. (WTNH) — Republican leaders in Congress say victory is in sight this week for their massive federal tax plan.

However, a major percentage of Connecticut residents are expected to see their federal taxes go up along with other states in the region.

If you take the standard deduction on your federal taxes each year, you will likely see your taxes go down temporarily. But, for many Connecticut residents, they will go up.

The state tax department says that Connecticut has the highest percentage in the nation of residents that use the itemized deduction for state income taxes on their federal returns and the second-highest percentage in the nation for using the itemized deduction for property taxes. The average is close to $20,000.

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The plan being voted on this week in Washington slashes that to just $10,000

“Even though they’ve changed it a little bit, it’s still a huge loss of deductibility for Connecticut residents,” said Connecticut Department of Revenue Services Commissioner Kevin Sullivan.

The new limit on the deductibility of property taxes is predicted to depress real estate values in Connecticut and rest of the Northeast.

Senator Richard Blumenthal says that he and other Senate Democrats are making a last-ditch attempt to stop the Republican charge to pass the bill this week, adding, “It tilts the benefits so heavily in favor of the wealthiest and big corporations and offers crumbs and sweeteners to the middle class.”

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Sen. Blumenthal and others also say that, because the Republican plan ends the Obamacare requirement that everyone have health insurance, it will further harm Connecticut residents.

Governor Dannel Malloy (D-Connecticut) says, “The idea that we’re rushing headlong to make the rich richer at the expense of the middle class and the poor makes no sense at all.”

Democrats like Sen. Blumenthal are working to try to peel off some Republicans from voting for this. With Senator John McCain in Arizona, it would take two Republicans to say “no” to stop the plan.

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