Why Tax Reform Should Eliminate State and Local Tax Deductio

Under federal tax law, individuals may deduct the income and property taxes that they pay to their state and local governments, as well as any interest they receive from owning state or local bonds, from their total income when filing their federal taxes. In recent years, individuals have been allowed to choose between deducting their income tax or sales taxes.

Related Keywords

State Of California , California , United States , Illinois , Connecticut , New York , Puerto Rico , Australia , Massachusetts , Canada , New Jersey , Maryland , America , American , Kevind Dayaratna , Michael Sargent , Rachel Greszler Is Research Fellow In Budget , Heritage Foundation Center , Heritage Foundation Individual Income Tax Model , Heritage Foundation , Congressional Budget Office , Revenue Service , Roe Institute , Thomasa Roe Institute For Economic Policy , Treasury Department , Research Programmer , Local Tax , Municipal Bond Interest , Individual Income Tax Model , Income Taxpayers , Debt State , Deduction Subjects Federal Tax Revenues , Illinoi Taxpayer Accountability , Budget Stabilization Act , Data Analysis , Potential Impact , High Debt States , Rachel Greszler , Research Fellow , Economic Policy Studies , Senior Statistician , Policy Analyst , Income Public Use Tax File , Internal Revenue ,