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Understanding the Great Connecticut Taxpocalypse

The state relies on property taxes, and after the GOP tax bill, many fear that housing values will stagnate or crash.
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Hilary Russ/Reuters

Wall Street is warning Connecticut that its cities and towns could be in danger. An analysis released by Moody’s last week says that recent changes to federal tax law may wreck municipal finances across the state. From Stamford to Hartford, that’s not exactly a surprise to Connecticut residents.

Back in December, when Congress passed a major revision of the tax code, the bill included a cap on the state and local tax deduction. Wealthy households in high-tax states especially benefited from this provision, making the state and local tax (or SALT) deduction an easy target for a unified GOP government.