Quantcast

Rilling supports ‘any efforts’ to ease Norwalk SALT pain

Gov. Dannel Malloy. (File photo)

NORWALK, Conn. – This is a press release, presented in a slightly altered format from which it was sent:

 

GOV. MALLOY’S BUDGET PROTECTS CONNECTICUT RESIDENTS FROM NEGATIVE EFFECTS OF TRUMP’S TAX LAW

 

(HARTFORD, CT) – Governor Dannel P. Malloy’s FY19 budget adjustment proposal contains two specific provisions to protect Connecticut residents and employers from the negative effects of the federal Republican tax law that was adopted by Congress late last year and signed by President Trump.

Under the federal law, hundreds of thousands of residents will see a tax increase, property values could decrease significantly, and 13 million more Americans will become uninsured.  Currently, 41.04 percent of Connecticut residents claim the state and local tax (SALT) deduction, averaging $18,939.72 and putting the state second in the country (behind New York’s average of $21,038.02).  In total, the Republican tax bill is expected affect 171,118 taxpayers claiming $10.330 billion in federal tax deductions.

“The Republican tax law will hurt Connecticut residents if we don’t take immediate action,” Governor Malloy said.  “Let’s be clear about what this backwards legislation really does. Eighty-three percent of the benefits from this law go to the top one percent, while taxes actually increase for many middle class Connecticut families.  It is nothing more than a massive giveaway for the very wealthy while the middle class pick up the tab.  The actions we are proposing aim to protect Connecticut residents and businesses, who are specifically targeted by this law.”

Specifically, Governor Malloy’s plan proposes the following:

  1. A new revenue-neutral tax on pass-through entities, fully offset by a personal income tax credit, will prevent Connecticut’s small business owners from being targeted by the federal tax law.
  2. Allowing municipalities to create charitable organizations that support town services, in conjunction with a local property tax credit, will allow our cities and towns to continue to provide services while reducing individuals’ federal taxes.
  3. To avoid a General Fund revenue loss, Connecticut will not adopt federal tax changes related to accelerated depreciation and asset expensing.

“I applaud Governor Malloy for his efforts to protect Connecticut taxpayers from the Trump tax plan,” Lt. Governor Nancy Wyman said.  “This law is upside-down, taxing working families more to pay for tax cuts for the wealthiest one percent.  It is poised to do significant harm to taxpayers here in Connecticut and throughout the region.  We must act now to try to reduce the burden on our residents.”

“The new federal tax bill passed by President Trump and the Republican Congress will cost Connecticut taxpayers over $10 billion in lost deductions for state and local taxes,” Department of Revenue Services Commissioner Kevin Sullivan said.  “Governor Malloy’s proposals go a long way to help tens of thousands of Connecticut taxpayers avoid increased federal taxes due to this substantial federal loss.  Locally, cities and towns could offer the option of municipal foundation donations eligible for federal charitable deduction instead of property tax payments.  The Governor’s second proposal would help businesses that remain eligible to federally deduct state and local tax payments pass along the benefit to individual taxpayers who could claim an equivalent state income tax credit.  All of this is fully consistent with long-existing federal tax practice, and Connecticut will fight any attempt to pressure the IRS into pressuring the states.”

“Taxpayers who itemize will have their deductions for state individual income, sales, and property taxes limited to a cap of $10,000 starting in 2018,” Norwalk Mayor Harry Rilling said.  “I support any efforts made by the Governor and the state’s legislature to reduce the impact of this limit on SALT deductions on taxpayers, particularly for those living in the City of Norwalk.  The details of the Governor’s plan will require a great deal of analysis and discussion and I look forward to participating in this effort.”

“Numerous people in our community are highly concerned by the federal tax law, which will impact their bottom lines negatively,” South Windsor Mayor Saud Anwar said.  “I am hopeful we can come up with a solution, and the Governor’s proposal is a step in the right direction.”

 

 

 

This press release was posted as a public service. A press release is a written announcement submitted to news organizations to publicize an event or activity, a milestone or a point of view. NancyOnNorwalk has not researched the assertions made and takes no responsibility for the content.

5 comments

Donna Smirniotopoulos February 6, 2018 at 11:56 pm

Can Governor Malloy break the tax changes down by income and tax bracket? My own opinion is that the most affluent CT residents could be hurt by the limits on the SALT deduction. But middle income residents in modest homes who live in municipalities with decent mill rates will benefit.

Josh Ornstein February 7, 2018 at 7:08 am

You’re exactly correct. The rest of this story is phony spin intended to make you think they’re the good guys for charging you massive taxes.

Non Partisan February 7, 2018 at 7:37 am

If Malloy and Rilling were concerned abound the impacts of the new tax laws there is plenary they can do today

In Norwalk we can
Enforce zoning and stop illegal accessory uses
End our sanctuary city policies
Hire a code enforcement official instead of a communications director
Allow Sono to be gentrified
Moritorium on the 10% subsidized housing requirements until we get back down to 10%

Michael McGuire February 7, 2018 at 12:04 pm

I would hope our Mayor would take the “bull by the horns” and create measure right here in Norwalk that would alleviate SALT issues by growing Norwalk’s Grand List.

For instance, it is possible to increase the actual tax revenues derived from the Wall Street area by close to $2.0 million per year but it would take reactivating the Wall Street Train Station.

However, the Mayor’s advisors have implied that a train station here is not going to happen. One can only surmise this is due to the State having no money to do this.

However, there is a very plausible way to have the private sector build this station. The only thing required of the Mayor and City Hall would be they demand that MTA make this a normal stop on the Danbury Line. They can do this as part of the mitigation package for the havoc about to be visited upon Norwalk by the Walk Street Bridge Project.

You need only look at today’s Hour front page article on the plan to revamp the West-Wall area into a tech/arts hub to recognize that a station on Wall dove-tails nicely into this plan.

In the past three years I have lost a number of tech oriented companies in our building (64 Wall Street). All cite the same issues – they say they like the area and building but without access to a train station they find it hard to attract the talent they need to allow their business to grow. Train Stations are engines of growth.

I’ve asked them why their workers would not take the bus and the answer is the same – talent like this does not ride the bus.

However, the current preliminary plan put forward by the Mayor’s advisors is for a circulator bus to connect Wall to the SoNo Train Station. I ask you – how does that help as a bus already connects the two and its under-utilized and frankly in poor fiscal shape due to low ridership (has anyone every seen one of these buses full?).

Furthermore, the circulator bus plan is much more costly to the City to set up initially, and operate annually. And it does nothing to help alleviate the parking issues at SoNo Station.

Did anyone ask the tech companies if a Train Station at Wall Street would be a plus? I did, extensively.

So to summarize we can have either A) a Train Station on Wall Street funded by the private sector which revitalizes the area bringing in a huge increase in tax revenue, or B) a costly circulator bus that does little to encourage revitalization of the Wall Street area, and Wall Street stagnates for another decade, or two.

Follow this topic, and make comments, on Facebook at

https://www.facebook.com/WallStreetTrainSation/

Once I figure out how Facebook works I’ll be populating this site with loads of supporting data. Or if your a Facebook guru and want to help out let me know.

Andrew February 8, 2018 at 9:06 am

While at the same time looking to reduce the tax burden for developers in the new “tech corridor” which will only increase the tax burden for the remaining property owners in town not lucky enough to receive this new gimmick.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>