In the wake of the new tax law, we’ve heard a lot about how richer, generally high-tax and often Democratic-leaning states are going to take a hit. The federal government expects to raise some $600 billion, largely from those states, by limiting the state and local tax deduction.
Now there’s talk at the state level about how to dodge that blow. A few approaches have emerged thus far.
In New York, Gov. Andrew Cuomo is looking at swapping the personal income tax for a business payroll tax, which is still fully deductible at the state level.