Blue-State Residents Are Reaping Big Refunds From Trump Tax Law's SALT Cap [View all]

President Trump’s tax cuts are delivering bigger refunds and smaller tax bills to high-income Democratic-leaning regions that didn’t vote for him.

Millions of taxpayers—largely those who earn between $150,000 and $600,000—are starting to reap the benefits of a change that lets them deduct far more of their state and local taxes, or SALT, from their federal taxable income. In last year’s tax law, Congress raised the cap for that deduction to $40,000 from $10,000.

That means people with high state income taxes and local property taxes can pay less to the federal government, and those people are concentrated in such states as New York, New Jersey and California.

So far this tax season, refunds for people in some higher-tax states have been growing faster than the national average, according to an analysis by Navy Federal Credit Union of member deposits.

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https://www.wsj.com/politics/policy/trump-salt-tax-deduction-democratic-states-c419b8a4?st=9GdfbY&reflink=desktopwebshare_permalink

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