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These Are the Tricks States May Use to Get Around the SALT Deduction

  • New York, California and New Jersey face some tax hikes
  • There’s precedent for plan to keep resources in states
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Bloomberg’s Kevin Cirilli reports on what groups could benefit from the GOP tax reform plan.Source: Bloomberg)

Exploiting tax loopholes is a sport associated with rich people and their fancy accountants. State governments may have to start getting fancy, too.

Republican Senate and House negotiators in Washington agreed last week on a $10,000 cap on state and local tax deductions, or SALT. In high-tax states, that’s bad news. Personal taxes are poised to rise for 13 percent of New Yorkers and 11 percent of California and New Jersey residents, according to an analysis by left-leaning Institute on Taxation and Economic Policy, conducted after the bill’s final details were announced.