Malloy's Budget Revisions Aim to Lower Tax Payments to Federal Government - NBC Connecticut

Malloy's Budget Revisions Aim to Lower Tax Payments to Federal Government

    processing...

    NEWSLETTERS

    Connect to Healthier Through the Sport of Golf
    NBCConnecticut.com

    Gov. Dannel Malloy is looking for ways to keep more money in Connecticut taxpayers’ pockets when it comes to how much they pay the federal government.

    That’s part of his budget adjustment plan laid out Monday afternoon.

    The idea is to allow cities and towns to form charitable organizations and then have local taxpayers make donations there, rather than direct property tax payments.

    The hope, according to the Malloy administration, is for wealthier residents who itemize to be able to deduct that payment as a charitable donation, which under the new tax law would lead to less money being paid to Washington.

    Republicans say they don’t think the plan will be legal, while the governor says the state has an obligation to help residents when it comes to the new tax law.

    “That is a scheme that I find very objectionable because the risk is going to be on the taxpayers. If we enable it and municipalities do it and someone gets called by the IRS that you owe it, it’s going to be up to that individual to fight the IRS,” said GOP President Pro Tem. Len Fasano (R).

    “It would be unreasonable for us as a state to not propose ways to assist our taxpayers so we are proposing ways that under current law would assist our taxpayers,” said Malloy (D).

    The budget proposal does include revenue collected by higher gas taxes, and reduces payments to city and town aid.

    The proposal has 11 revenue changes that the governor says would reduce our budget gaps by half.

    Now that House and Senate Democrats have this information, they will meet Tuesday to lay out their agenda for the 2018 session.

    For more on the budget, click here.

    Get the latest from NBC Connecticut anywhere, anytime