Attorney General Tong and Governor Lamont Continue Efforts to Defend SALT Deduction

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Attorney Standard Tong and Governor Lamont Continue Efforts to Defend SALT Deduction

(Hartford, CT) — Legal professional Normal William Tong and Governor Ned Lamont announced now that Connecticut submitted a petition for certiorari to the U.S. Supreme Courtroom to carry on their lawsuit against the federal government for its illegal and unprecedented cap on the deduction for state and area taxes, identified as SALT.

Today’s petition asks the Supreme Court to assessment an Oct 2021 ruling by the U.S. Court of Appeals for the Next Circuit that upheld the district court’s rejection of the states’ accommodate, which argues that the SALT cap was a politically enthusiastic bid by the former federal administration to interfere with the plan possibilities of predominantly Democratic states.

“The SALT cap was a politically enthusiastic income seize by the former president that continues to value Connecticut people an believed $2.8 billion a 12 months,” Legal professional Basic Tong claimed. “We are asking the Supreme Court to hear our attractiveness and block this unparalleled and unlawful interference in our states’ tax conclusions. I thank the Connecticut Congressional delegation for their sustained endeavours to reverse this partisan tax hike.”

“The cap on condition and area tax deductions that was applied throughout the prior administration unfairly enhanced taxes on thousands and thousands of middle-course Individuals when slicing taxes for significant organizations and the pretty rich,” Governor Lamont explained. “The cap hurts hardworking folks in states like Connecticut and it must be overturned. I enjoy the get the job done of Lawyer Common Tong and our Congressional delegation to restore the SALT deduction.”

The lawsuit — which was initially filed in July 2018 in the U.S. District Court docket for the Southern District of New York — argued that the new SALT deduction cap was enacted to target Connecticut and likewise situated states, that it interferes with states’ legal rights to make their personal fiscal conclusions, and that it will disproportionately harm taxpayers in these states. The top states with the maximum typical deduction for condition and neighborhood taxes — a vast majority of which are Democratic — involve New York, Connecticut, Maryland, and New Jersey.

The 2017 Tax Act reversed above a century of precedent in the federal tax code — significantly curtailing the state and nearby tax deduction by capping it at $10,000. An assessment by the Connecticut Office of Revenue Expert services found that the cap amplified Connecticut federal taxes in 2018 by $2.8 billion.

In its September 2019 ruling, inspite of ruling in opposition to the coalition of states, the U.S. District Courtroom for the Southern District of New York agreed that the states had been hurt dependent on their argument that the cap on the point out and local tax deduction may perhaps depress residence prices. By properly boosting condition assets taxes, the SALT cap will also reduce the value of a homeowner’s home, therefore discouraging household product sales and lowering the revenues the states are equipped to obtain by taxing these kinds of sales.

Connecticut joins New York, Maryland, and New Jersey in filing today’s petition. &#13


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