Wow, there is sure a lot of discussion about the limit placed on the deductibility of state and local taxes by the Tax Cuts and Jobs Act, and the related regulations recently issued by the IRS. I wrote about those regulations on August 30, pointing out that the regulations will limit or disallow federal deductions for payments for which the taxpayer receives a state or local tax credit. The effect will be to undo measures put in place by certain states that would treat otherwise non-deductible state and local tax payments as charitable contributions.
If you want to read some scholarly analyses about how all this works or doesn’t work, and how it should or should not be changed, here are some links:
And here’s a link to a report on what I would call a decidedly non-scholarly, political attack on the proposed regulations:
As you can see, the links are all from the TaxProf Blog. Of course, you can go and read the source papers, if you’re so inclined.
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