Gov. Malloy: President Trump’s Tax Plan is No Help to the Middle Class
(HARTFORD, CT) – Governor Dannel P. Malloy today said that the tax plan unveiled today by President Trump and Congressional Republicans provides billions of dollars in tax cuts for the wealthiest in the country at the sacrifice of the middle-class, including average individuals and families in Connecticut who will end up paying for tax breaks for billionaires.
“As we begin to review the partisan tax plan from President Trump and Congressional Republicans, one thing already is obvious: this proposal, drafted in secret, would stick it to middle-class Americans in order to pay for massive tax cuts for only the wealthiest one percent,” Governor Malloy said. “According to the non-partisan Government Finance Officers Association, the partial elimination of the personal income and sales tax deduction alone would increase taxes on middle-class Connecticut taxpayers by 13.5 percent, or more than $800 on average. The fact is, this proposal will raise taxes for significant portion of Connecticut residents, likely leading to cuts in state and local services, and cost the country over $1.5 trillion. It is a prime example of what it means to be ‘penny-wise and pound foolish’ and should be rejected by reasonable members of Congress.”
“This tax plan is another step in the wrong direction for working Americans and families,” Lt. Governor Nancy Wyman said. “While middle-class individuals and families will feel the pain, perhaps most alarmingly, these tax breaks for wealthy Americans are paid for by cutting deeply into Medicaid and Medicare, core programs supporting seniors, the working poor, and people with disabilities. Using these programs to fund tax cuts for billionaires is just wrong, and it’s another promise broken by President Trump. ”
Connecticut Department of Revenue Services Commissioner Kevin B. Sullivan agrees, adding that the federal deficit will grow exponentially under the proposal.“Some lowering of federal business tax rates makes economic sense, but four things are now certain about the long-awaited Republican tax plan,” Commissioner Sullivan said. “It’s political payback to every blue state like Connecticut, where eliminating deduction for state income taxes is really a double-digit federal tax increase for middle income taxpayers. It’s overwhelmingly a big tax break for the wealthiest one percent and little or nothing for everyone else. The $1.51 trillion tax cost will drive federal deficit spending for the next decade. And, repeal of the alternative minimum tax means President Trump will never pay federal income taxes – if he ever has.”