Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
Average State and Local Tax Deductionfor High-Income Taxpayers
Margin of support in 2016 presidential election
◄ MORE REPUBLICAN MORE DEMOCRATIC ►
Highly-populated counties in Democratic-leaning states like California and New York tend to claim much higher SALT deductions.
Taxpayers earning $200,000 or more, who make up 4.5 percent of all returns, are at the highest risk of a tax increase from the SALT repeal, because many currently deduct much more in state
and local taxes than the bill’s new standard deduction.
While many lower-income people take the SALT deduction, many would end up better off under the bill
because the new standard deduction would be worth more than what they deducted in SALT and other itemizations.
Because Democratic voters are more concentrated in high-tax states like New York and California, taxpayers in counties
that voted for Hillary Clinton take much larger SALT deductions on average.
There are a handful of Republican counties, particularly in New York and New Jersey, that claim high amounts of SALT deductions.