One thing is true when it comes to tax law changes. Some people win and some people lose.
The big question as we await the Trump Administration’s tax reform proposal is who will end up in which group.
One segment seen as a potential big loser in the proposal Republicans will release on Wednesday, Sept. 27, are the Americans who pay state and local taxes. These include income, sales and property taxes, all of which currently can be claimed as itemized tax deductions.
Letting the U.S. Treasury hang onto this now-deductible money could increase federal revenue by nearly $1.3 trillion over a decade, according to the Tax Policy Center. That would go a long way toward paying for other tax changes the GOP wants to make.
Eliminating these deductions, however, would increase taxes for about 24 percent of U.S. taxpayers