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State Department of Revenue Services Commissioner Kevin B. Sullivan
ctmirror.com

Washington – Connecticut Commissioner of Revenue Services Kevin Sullivan says the House GOP tax bill “could provide some economic stimulus…for states like Connecticut,” but he also said the plan is “fundamentally flawed” and that many in the state would end up owing more in federal income taxes.

“Contrary to all the talk of a ‘middle-income tax cut,’ the plan actually represents a huge windfall to the wealthiest federal taxpayers and is truly regressive,” wrote Sullivan in a Nov. 8 letter to Rep. John Larson, D-1st District.

Sullivan said that in Connecticut, more than 75 percent of the proposed tax cut would go to the top 1 percent, who would pay 8.5 percent less tax, on average.

InformCT Q3 2017CONNECTICUT: A new survey by administered by the quasi-government Connecticut Economic Resource Center [CERC] says that residents are concerned about what would typically be seen as social concerns for Connecticut residents.

The survey headline is “Health, Safety, Students, Security of Vulnerable Populations Should be Top Priorities for State Spending, Residents Say.”

The data was compiled as part of the InformCT Consumer Confidence Survey, for the third quarter 2017. According to the organization “InformCT is a public-private partnership that provides independent, non-partisan research, analysis, and public outreach to help create fact-based dialogue and action in Connecticut.”

According to the survey healthcare is the number one priority for the allocation of state funds, with 52 percent describing health as very important and another 29 percent indicating it is important.

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Senate tax bill would have big impact on CT homeowners, small businesses

 
Senate Finance Committee Chair Orrin Hatch, R-Utah, and Senate Majority Leader Mitch McConnell, R-Ky, spoke briefly to reporters before a closed-door meeting on their tax reform bill Thursday.

Washington – The Senate decided to go its own way in overhauling the nation’s tax code, and its plan would have a different impact on Connecticut taxpayers than a similar House bill.

The Senate bill would push back for a year President Donald Trump’s top priority of cutting the corporate tax rate from a maximum of 35 percent to 20 percent. Holding off implementation of the new rate would lower the cost of the bill by $100 billion, but it also would delay the GOP’s plans to entice businesses to move offshore operations back to the United States.

The biggest changes affecting individuals in Connecticut is the bill’s elimination of the deductibility of property taxes. The House plan would allow deducting these taxes up to $10,000.

Peter Gioia 1A vice president and economist with the ConnecticutBusiness and Industry Association, Peter Gioia has spent the past 18 years with the state’s chief business lobby, managing its research department and tracking Connecticut’s economy through a quarterly survey.

Before his tenure with CBIA, Gioia was a senior consultant with the accounting firm KPMG, a researcher for The Futures Group — a Glastonbury-based demographics consulting firm — and a budget analyst for the Connecticut legislature’s nonpartisan Office of Fiscal Analysis.

Gioia, who lives in Rocky Hill, serves on the governing boards of the New England Economic Project and the MetroHartford Economic Growth Council.

corporate taxWASHINGTON: The Republican House of Representative has presented a corporate tax reduction plan from 35% to 20%. The website WalletHub.com issued a report on 2016 tax rates at the state, federal and international levels in the case of the S&P 100 companies. S&P companies are the largest and most established businesses in the U.S.

Attached to our Wallethub.com report is a table conntact.com created based on Yahoo financial data of a select group of public companies that are headquartered in, have significant operations or employment in Connecticut.

An analysis of these companies shows that they average federal income tax rates is typically in excess of the 20% that the legislation promises. The Connecticut company table does not include, state income, sales or property taxes.

 

HARTFORD: A newly united Senate took a major step early Thursday toward ending Connecticut’s nearly 17-week budget impasse, overwhelmingly adopting a $41.3 billion, two-year plan that closes huge deficits without raising income or sales tax rates, imposes modest cuts on local aid, and provides emergency assistance to keep Hartford out of bankruptcy.

By a veto-proof margin of 33 to 3, the Senate approved the budget after a collegial and self-congratulary three-hour debate that ended with hugs, fist bumps and hand shakes just before 2 a.m. Seventeen of 18 Democrats and 16 of 18 Republicans voted to send the bill to the House, which is scheduled to debate it later Thursday.

The surprisingly strong vote, coupled with the expectation of a similarly strong margin in the House, set the stage for a decision by Malloy to accept the compromise or risk a veto override that could color his last year in office.

He declined to speculate Wednesday morning on whether he would sign or veto a budget he had not seen. A copy was not provided to his office until mid-afternoon.