The Week in Public Finance: Why Low-Tax States Could Come to Dislike the New Tax Law, Too

When Congress capped the state and local tax deduction at $10,000 as part of its tax overhaul late last year, it was mostly officials from high-tax states such as California, New Jersey and New York that cried foul. But new research shows that taxpayers in more than one-third of states some with relatively low-income taxes could be negatively affected by the change. In 19 states and the District of Columbia, the average taxpayer deducted more than $10,000 in state and local taxes, according to a report released this week by the Pew Charitable Trusts. It looked at tax returns from 2015 and found that the average deductions in those 19 states ranged from more than $22,000 in New York to just $10,121 in New Hampshire.