ANALYSIS: $7.5B IN FED DEDUCTIONS VANISHING UNDER TAX REFORM
By Michael P. Norton
STATE HOUSE NEWS SERVICE
JAN. 11, 2018.....Public policy debates often pivot on the value and impact of tax cuts and reductions, and the uncapped deduction for state and local taxes wiped off the books by the federal government in late December is a doozy in Massachusetts.
According to a new report from the Massachusetts Taxpayers Foundation, Bay State residents in 2015 were able to deduct from their gross income $19 billion in state and local taxes under the tax structure in place before Congress and President Donald Trump last month capped those deductions at $10,000 per year.
That means that about $7.5 billion in federal deductions taken by Massachusetts residents will no longer be available, according to a foundation analysis shared at the News Service's request. The analysis shows about a third of taxpayers will be affected, with the largest impacts felt among the wealthiest.
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