People living in high-tax cities and states like New York and California will take a hit, though Sen. Susan Collins, R-Maine, lessened that blow in the final hours of negotiations by retaining some deductions for property taxes.
The original bill completely eliminated the deduction for state and local taxes (SALT), but Collins insisted on retaining a deduction on property taxes up to $10,000. According to the Tax Foundation, the property tax deduction accounts for just over one-third of all state and local taxes deducted in 2015, the most recent year for which data are available.
According to that group’s analysis, this deduction also benefits middle-income earners more than deductions on state and local income tax would.
