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Tax Foundation Federal deductibility is distorting tax liability in six states

NOVEMBER 1, 2021 | by Jared Walczak | TAX FOUNDATION

By Jared Walczak, includes “At the federal level, the state and local tax (SALT) deduction has emerged as a hot-button political issue ever since the deduction was capped at $10,000 under the Tax Cuts and Jobs Act (TCJA) of 2017. The SALT deduction has defenders as well as detractors, but a peculiar inversion of it—a state deduction for federal taxes paid—exists in only six states. Despite the best of intentions, it is bad news for taxpayers. Fortunately, three states are on track to eliminate the policy within the next few years. The other three should join them.”

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