But if the state and local deduction disappears, the task will become that much more difficult. In 2013, almost six million taxpayers in California used the state and local tax deduction, claiming an average of $16,420, according to the nonpartisan Tax Policy Center. This is not to say that the state and local tax deduction is the ideal mechanism to bolster the finances of state and local governments. It is loaded heavily to benefit the rich, who pay the highest federal tax rates and are the most likely to itemize their deductions. They also pare back the alternative minimum tax, which prevented some taxpayers from benefiting from the state and local deduction.

Source: New York Times December 05, 2017 14:48 UTC