July 2019
Politicians in New York, New Jersey and Connecticut have been fighting the state and local tax (SALT) deduction since it was capped at $10,000 as part of 2017 tax reform. The SALT deduction is capped per year on Federal Schedule A for taxpayers who itemize. State legislators have been leading campaigns to eliminate the provision with subsequent legislation, as well as making an effort to find a legal workaround that would ease some of the pain of the SALT cap. They fear that failing to do so will accelerate efforts by high-earning residents to move to lower-tax states.
