State & Local Government Policy, Business and Technology

Local Governments Prepare for a Federal Fight Over 'Double Taxation'

Route Fifty:WASHINGTON — Mayors and county officials are among those preparing to defend a longstanding federal tax deduction for money people pay in state and local taxes.

They anticipate the deduction will be on the chopping block as the Trump administration and GOP members of Congress forge ahead with plans to revamp the U.S. tax code. More details are expected about the pending Republican tax plan in the days ahead. It’s tentatively slated to involve up to $1.5 trillion in tax cuts over 10 years.

Local leaders and public finance experts say nixing the state and local deduction, which dates back to 1913, could make it harder for some states and localities to raise their own tax rates.

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