California can preserve state and local tax deduction, even if Congress ends it

[David__77]

If Republicans’ tax overhaul passes next week, California taxpayers are likely to lose many of the state and local deductions that saved them more than $100 billion on their taxes in 2015. But legislative staffers and tax law experts are already gaming out ways to adjust the state’s tax code to offset the loss of those deductions and counter other changes to federal taxes.

That could save Californians a lot of money – but also explode the federal deficit.

...

But California could shift its tax burden away from income tax — one of the highest in the nation —and onto employers via the state payroll tax. Unlike individual taxpayers, employers would still be able to deduct this state tax on their federal returns.

http://www.sacbee.com/news/politics-government/capitol-alert/article188873719.html#storylink=cpy

I hope that legislators in California and New York and other states are readying these possibly needed fixes.

[enough]

1. Hope these States seriously work on this.

[roamer65]

2. Create a new higher income tax bracket at the CA state level for the wealthy.

Then use the revenue from it to reimburse all below that new bracket for the loss of the SALT deduction. It’s basically going after the wealthy’s federal tax cut and putting it back where it belongs.

The Feds can’t do jack shit about it.

Problem solved.