CT Dems Oppose GOP Tax Cuts, All to Defend a Deduction That Flows to RichNovember 6, 2017
Connecticut Democrats all reference the state and local tax (SALT) deduction in their opposition to the GOP tax plan. This primarily benefits the rich, though.
In the last week, Gov. Dan Malloy (D-Conn.) and Sens. Chris Murphy (D-Conn.) and Richard Blumenthal (D-Conn.) have come out in strong opposition to the national GOP’s tax cut plan.
All three cite proposed limitations on state and local tax (SALT) deductions as a primary reason for their opposition. SALT deductions, in effect, subsidize the high income and property taxes of liberal states like Connecticut.
One aspect of SALT that Connecticut Democrats don’t like to mention, though, is that it primarily benefits Connecticut’s wealthiest residents.
According to USA Facts, the average SALT deduction for the middle 20-percent of earners in America ($31,000 a year to $61,000 a year) is worth $144 a year. Many in that middle bracket will benefit far more from, say, doubling the standard deduction than from the $144 they lose in SALT deductions.
Meanwhile, the top one percent of earners see a benefit of $21,723 a year from SALT. That skews the average SALT benefit for all filers significantly higher, to $645 per year.
Cutting back on the $90 billion in revenue the government foregoes through providing the SALT deduction would help pay for tax cuts across the board, for both individuals and corporations.
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