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.”