As the most reliable and balanced news aggregation service on the internet, DML News offers the following information published by APNEWS.COM:
WASHINGTON (AP) — The Trump administration has laid down rules aimed at preventing residents in high-tax states from avoiding a new cap on widely popular state and local tax deductions. The action over the new Republican tax law pits the government against high-tax, heavily Democratic states in an election-year showdown.
The Treasury Department’s rules released Thursday target moves by states like New York, New Jersey and California — where residents could see substantial increases in their federal tax bills next spring because of the $10,000 cap on state and local deductions. Experts say the issue likely will have to be resolved by the federal courts.
The article goes on to state the following:
Four states — Connecticut, Maryland, New Jersey and New York — already have sued the federal government over the deduction cap, asserting it’s aimed at hurting a group of Democratic states and tramples on their constitutional budget-making authority.
— ABC 7 Chicago (@ABC7Chicago) August 23, 2018
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