A Salt and Battery

6/28/19
 
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from TPPF,
6/28/19:

What to Know: It’s not complicated; people are leaving high-tax states because the federal government no longer softens the tax blow through its State and Local Taxes (SALT) deduction.

“The exodus from high-tax states is expected to accelerate throughout the coming months and years, and lower-tax states are welcoming both individuals and businesses with open arms,” Fox Business reports. “There are a number of campaigns popping up in states like Florida – where there is no state income tax – targeting people in states like New York, New Jersey and Illinois, which were some of the areas hardest hit by a new $10,000 cap on state and local tax deductions.”

The TPPF Take: Capping the SALT deduction was a key part of the 2017 Tax Cuts and Jobs Act.

“This change in the tax code has shifted more than $85 billion of capital from the 23 high-tax states such as California and New York to low-tax states such as Texas and Florida by ending the federal subsidy for high state and local taxes,” says TPPF’s Chuck DeVore. “And about 500,000 jobs were created in low-tax states because of this change.”

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