Officials in New York, New Jersey and California are working to reshape their tax codes to ease residents' pain from new limits to federal deductions for state, local and property taxes.
Starting this year, the Tax Cuts and Jobs Act, the GOP's new tax code, caps taxpayers' deductions on their property, state and local incomes taxes (SALT) at $10,000.
But in 2015, the average New Yorker's SALT deduction was more than $22,000. In New Jersey and California, the average deductions were around $18,000.
Previously, there was no limit on the extent to which taxpayers could deduct these local levies. The change means many residents in these states — and many others — will now pay more to the federal government. (See chart below.)