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GFOA: The Impact of Eliminating the State and Local Tax Deduction (2015 Data)

As part of its tax reform efforts, Congress is debating whether to eliminate the ability for taxpayers to deduct state and local taxes (SALT). Similar efforts have been attempted in the past, and they failed each time — for a simple reason. If SALT were repealed, almost 30% of taxpayers, including individuals in every state and in all income brackets, would be adversely impacted. In 2015, the most recent year for which data are available, that included over 44 million tax units representing well over 100 million Americans. Additionally, more than 50% of the total amount of the SALT deduction went to…