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Conn. Congressional delegation reacts to unveiled tax proposal

5th District Congresswoman Elizabeth Esty is upset that the proposal to reduce the state and local tax deduction claimed by middle-class families was included in the legislation to overhaul the nation’s tax code.  She says 41-percent of Connecticut filers claimed the deduction in 2015, with an average deduction of $19,664.  Esty says families in Connecticut already pay more to the federal government in taxes than they get back in federal support. 

 

She doesn't believes that preserving the deduction for property taxes but not state income taxes is a compromise.  She said there’s a reason the SALT deduction is as old as the tax code itself: it’s central to the idea of fairness as Americans.

 

4th District Congressman Jim Himes says the country is in need of a modern tax code that supports middle-class families, fosters business development and is globally competitive.  But he says the plan unveiled yesterday will explode the national debt by trillions of dollars.  He says the plan eliminates key deductions like the state and local income tax deduction, medical and student loan expense deduction, and capping property tax deductions.

 

Senator Richard Blumenthal says the tax reform plan unveiled yesterday is reform in name only.  He also says it's based on wildly unrealistic predictions of economic growth and job creation.  Blumenthal called it a massive giveaway to special interests and the wealthiest, shifting the burden to the backs of the middle class.