It's a tax provision that could prove costly for schools, police forces, drug treatment centers and other state and local public services. But many middle class families in those states face disproportionately high housing costs and depend on deducting their state and local taxes. Even as Republicans in Congress decided to cap the state and local tax deduction for households at $10,000, their tax bill will continue to allow corporations to deduct their state and local taxes as a business cost. Speculation has centered on reducing income taxes and raising payroll taxes — in effect, shifting some of the state tax burden from workers to employers. Allowing up to $10,000 of state and local taxes to continue to be deducted, he said, "takes it from horrible to slightly less horrible."

Source: ABC News December 17, 2017 15:45 UTC