Tax cut for the wealthy? Not all of them
Federal tax reform proposed by President Donald Trump and passed by Congress has been criticized as a big break for the wealthy. But it’s not quite that simple.
That’s because, while tens of millions of Americans are seeing noticable tax cuts in their paychecks, many wealthy individuals are finding they pay more.
This especially is true for those who pay high state and local tax rates, courtesy of the loss of deductions for local and state taxes.
Of course, legislatures in New York, New Jersey, California and other states are working to enact tax breaks for those higher earners.
Without that, wealthy residents of high-tax areas will become more keenly aware of the true cost of their relatively high state and local tax rates.