A “mansion tax,” other ideas suggested to make taxes fair
HARTFORD, Conn. (AP) — The state Senate’s top Democrat says lawmakers should offset negative impacts of the new federal tax law on many Connecticut taxpayers.
Senate President Pro Tempore Martin Looney of New Haven says the legislature could consider ideas such as a “mansion tax” on valuable properties or a separate tax rate on capital gains income to ensure Connecticut’s tax policy takes a larger percentage of revenue from high-income groups.
Democratic Gov. Ned Lamont doesn’t support increasing income tax rates for the wealthy.
Looney and other Democrats complained Monday — the tax filing deadline — how the federal tax law limits the state and local tax deduction taxpayers can claim at $10,000, hurting middle-income earners.
The Office of Legislative Research estimates the change led to a $2.8 billion tax increase for Connecticut taxpayers.