Top
image credit: Pixabay

Repeal of State-Tax Deduction Cap Pitched for Covid-19 Relief Bill

WASHINGTON—Lawmakers from New York and New Jersey, looking to capitalize on new Democratic majorities in Congress, are trying to repeal the $10,000 cap on the state and local tax deduction as part of a pandemic-relief bill. But the Biden administration has been noncommittal, and the move looks likely to wait until later this year.

The lawmakers say the cap, created in the 2017 tax law, punishes their constituents unfairly and pushes residents to move to low-tax states such as Florida. They are pitching the break as crucial to their states’ economic recovery.

Read More on The Wall Street Journal