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Federal Tax Reform May Be Saving Money for States, Even High-Tax Ones
Governing: Many states that lobbied against federal tax reform’s limit on a certain tax deduction are now benefiting from a potential effect of that 2017 policy change.
Tax reform capped the state and local taxes (SALT) that filers can deduct from their federally declared income at $10,000. High-tax states like California, New Jersey and New York have sued to block that change because their state and local taxes can be twice that amount for residents.
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