A study from the Tax Policy Center reveals that an increase in state and local tax deduction limits would benefit wealthier taxpayers more than lower- and middle-class individuals. The current $10,000 deduction cap, established by the 2017 tax law, has adversely affected taxpayers in high-tax states like California. House Republicans, with support from President Trump, are pursuing new legislation to extend or revise these limits as the 2026 budget process begins. Significant discussions surrounding this issue are currently taking place among lawmakers and state officials.
House Republicans aim to raise the limit on state and local tax deductions, with lower- and middle-class taxpayers seeing minimal savings compared to wealthier voters who will benefit significantly.
The expiring 2017 tax law limited state and local tax deductions to $10,000, disproportionately affecting taxpayers in high-tax states like California as they seek legislative changes.
#tax-policy #state-and-local-taxes #trump-administration #republican-legislation #california-tax-law
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