Income taxes

Adjusting the deduction cap for state and local taxes is not included in latest proposals, though advocates for that measure remain hopeful.

Gov. Ned Lamont signed income tax rate cuts expected to benefit nearly 1 million people in the most comprehensive cut since the income tax was imposed in 1991.

Weakening revenues should be a red flag for states, particularly those planning tax cuts, said Lucy Dadayan of the Urban Institute's Tax Policy Center.

Lawmakers are re-introducing legislation to repeal the deduction cap on state and local taxes

Sen. Susan Collins introduced the SALT Deduction Fairness Act last week, the latest effort to restore a full income tax deduction for state and local taxes.

The state approved further cuts next year with provisions for possible additional cuts annually, starting in 2025, paving the way for the elimination of the personal income tax.

The bill, introduced in the House by Rep. George Santos, R-NY, is one of three currently circling around Congress that would lift the state and local tax deduction.

The issue is important to lawmakers in high-tax states, and is also important to municipal issuers in those places who have said the cap infringes on their fiancial sovereignty.

"Now our state is blessed with an opportunity for prosperity and growth unlike any before in our history," said Jim Justice.

The "no SALT no deal" Democrats appear ready to support the compromise reconciliation package negotiated in the Senate.