Would Trump tax cuts impact Californians? Could come down to SALT
My comments on the state and local tax cap are in the May 9 San Francisco Chronicle.
The maximum $10,000 state and local tax cap wasn’t too bad as Trump’s Tax Reform also increased the AMT exemption and thus most taxpayers no longer paid the AMT tax.
Under the AMT system, state and local taxes are not tax deductible.
In addition, Congress should think about indexing the cap for inflation or doubling the cap for married taxpayers as currently single and married taxpayers have a $10,000 cap (which is a marriage penalty).