Letter: Connecticut taxpayers can avoid cap on SALT tax deductibility
To the Editor:
Regardless of how someone feels about the major tax overhaul passed by Congress last December, there is no question that its impact will be felt by families in Ridgefield.
The $10,000 cap placed on the amount of state and local taxes (SALT) that filers can claim as deductions on their federal taxes is a component of the new law that will cost Connecticut taxpayers disproportionately, as The Ridgefield Press explored in an article this week. While this outrageous tax increase was incurred as a result of our state’s higher taxes, high property costs, and overall high cost of living, it was encouraging this past spring to see Rep. John Frey work on a piece of legislation aimed at offsetting this de facto tax increase.
In the new state law adopted by Connecticut as well as New York and New Jersey, municipalities are given the option to create “community supporting organizations” classified as charitable organizations. Taxpayers would make “contributions” to these organizations that are credited toward their tax liability, creating a way for Connecticut taxpayers to avoid the cap on SALT tax deductibility.
Although the IRS has yet to sanction this new tax law, the short-term benefit of protecting this tax exemption is that Connecticut taxpayers are shielded from yet another in a long series of new taxes and fees in this state. Many of us here in Ridgefield simply cannot afford to lose our SALT deductions and would be forced to consider relocating.
Advancing this new law was a shrewd move at a time when ex-migration has become a real concern and Connecticut needs new ideas to bring jobs and businesses back to the state.