Tax Choice? How The New Tax Plan May Unintentionally Empower Blue State Taxpayers
The new tax plan has put a strict limit on the deductibility of state and local taxes (“SALT”) at an arbitrary $10,000. Unsurprisingly, this change will disproportionately affect taxpayers in high property value blue states, like California. A few weeks ago a California legislator was talking about creating a charitable fund or a structure of charitable funds to which people could pay their taxes so that they will still be tax deductible on a Federal return – and even allow them to direct their tax dollars. It seemed far fetched at first. Ironically, the path has been laid for this novel approach by conservatives, who have used it for years to allow tax payers to deduct the cost of private and religious schools. This Slate article sheds some light … Deduct this. Thanks Stefan for pointing this out!