The Middletown Press (Middletown, CT)
State is No. 1 in taxes to D.C., 48th in money back
WASHINGTON — With the new administration of Gov. Ned Lamont staring into the face of a $1.7 billion deficit, elected officials are likely to confront a new long-standing reality: Connecticut sends way more to Washington in taxes than it gets back in government spending.
The state already ranks No. 1 in the nation for per capita federal taxes paid, with an annual average of $14,671 — 52.4 percent higher than the national average. And that ratio is likely to get worse when President Donald Trump’s 2017 tax package kicks in this year.
Homeowners and state income taxpayers face a $10,000 cap on state income and property tax deductions, which had always made life in a high-cost state somewhat more affordable. As a result, Connecticut will become more of a cash cow for the U.S. government than ever before.
As it stands, the statistical picture of Connecticut’s “balance of payments” — tax money out minus federal spending in — is not a pretty one. In this category, the state ranks No. 48, behind only Massachusetts and New Jersey.
Lamont and others view the imbalance as partly a reflection of Connecticut’s long-term state investments in roads, bridges, schools and the like.
“We’re already sending billions more to Washington