Esty Leads Connecticut House Delegation Resolution to Preserve State and Local Tax Deduction, Protect Middle-Class Connecticut Families and Tax Increases
Washington, D.C. – Rep. Elizabeth Esty (CT-5) led Connecticut’s House delegation on the introduction of a resolution calling for the preservation of the state and local tax deduction in the current effort to overhaul the nation’s tax code. According to the Government Finance Officers Association (GFOA), 41% of filers in Connecticut claimed the state and local tax deduction in 2015, with an average deduction of $19,664. The resolution earned the support of Rep. John Larson (CT-1), Rep. Joe Courtney (CT-2), Rep. Rosa DeLauro (CT-3), and Rep. Jim Himes (CT-4).
The House is set to vote on the budget plan passed by the Senate this week, which would pave the way for a vote on approval of a tax package potentially containing the elimination of the state and local deduction. The Senate’s budget plan, which passed over the objection of all Democrats and Sen. Rand Paul (KY), eliminated the deduction.
“Connecticut’s middle-class families can’t afford the tax increases they’d face if the state and local deduction is eliminated,” Esty said. “Our state already sends more to the federal government than it receives in dollar-for-dollar terms, and eliminating the state and local tax deduction would hit our wallets even harder and harm job creation efforts. I am committed to working with Democrats and Republicans to protect middle-class families from the massive tax hike they would face with the loss of the state and local deduction.
Our tax code is complex, burdensome, and in dire need of reform, but we shouldn’t redo it in a way that hurts working families. I want to see a bipartisan plan that helps, not hurts middle-class families, and that encourages companies to create more jobs here in America.”
“For more than 100 years, our nation has avoided the double taxation of our residents through the deduction of state and local taxes,” said National Association of Counties Executive Director Matthew Chase. “Eliminating or capping the SALT deduction would increase taxes on middle-income homeowners, undermine local decision-making and erode support for services like infrastructure, public safety and education. We applaud Representative Esty and will continue to work with Capitol Hill leaders to preserve SALT.”
“The double tax double standard proposed by the Big Six reveals their obvious hypocrisy: they believe the SALT deduction is good tax policy when it comes to corporate America, but they treat it as a waste of money when it benefits middle class America,” said Bob Chlopak, Co-Director of Americans Against Double Taxation. “The middle class should not be treated like a second class when it comes to SALT; the deduction must be fully preserved.”
“AASA urges the House to oppose any effort to modify or eliminate the State and Local Tax Deduction (SALT-D),” said Daniel A. Domenech, Executive Director of AASA, The School Superintendents Association. “We support the resolution by Rep. Elizabeth Esty that fully supports the SALT-D and its preservation, and we commend her leadership on this issue. We believe any comprehensive tax reform legislation must preserve this deduction. As one of the six original deductions allowed under the original tax code, SALT-D has a long history and is a critical support for investments in infrastructure, public safety, homeownership and, specific to our work, our nation’s public schools.”
“Congress should not eliminate the longstanding state and local tax deduction that tens of millions of middle class taxpayers nationwide claim,” said Marc Egan, Government Relations Director, National Education Association. “Doing so will raise taxes by thousands of dollars on families and place strain on states and local communities to reduce the support they provide to public services like education.”
Organizational Support for Rep. Esty’s SALT Deduction Resolution:
International Association of Fire Fighters (IAFF):
“The IAFF is proud to support Congresswoman Esty’s resolution protecting the State and Local Tax Deduction (SALT),” Local governments depend on the deduction to provide necessary public safety services to their citizens. If Congress acts to eliminate SALT, localities around the country will be forced to cut services or raise taxes to keep up with vital demands; both options unfairly targeting working, middle-class Americans.
The SALT deduction is not a left-leaning or right-leaning issue; it is not a red state versus blue state debate. Preserving this tax benefit for middle-class workers is about fairness for all Americans. The IAFF has always championed the ability for local governments to properly fund fire services based on the unique needs of their communities. Supporting the SALT deduction is a continued reflection of that commitment, and so we stand behind Congresswoman Esty and her resolution to protect SALT in the upcoming debate over tax reform.”
Government Finance Officers Association:
“The Government Finance Officers Association (GFOA) applauds Congresswoman Esty and her colleagues for standing up to protect this critical provision that has been part of the federal tax code for over 100 years. This deduction is important and widely used by tax payers in every congressional district across the country. Eliminating this provision substantially impacts hard-working families as well as the ability of state and local governments to provide vital services to local communities.”