Federal tax overhaul could lead to changes in some states

Federal tax overhaul could lead to changes in some states | iNFOnews.ca
FILE - This Dec. 20, 2017 file photo shows California Senate President pro Tempore Kevin de Leon (D-Los Angeles) in Los Angeles. In the wake of the new federal tax plan, de Leon, who is running for the U.S. Senate, said he planned to introduce legislation that would allow people to make charitable donations to the state instead of paying income taxes. (AP Photo/Damian Dovarganes, File)

CHERRY HILL, N.J. – Some state governments are considering tax changes in reaction to the federal tax overhaul.

In high-tax states, the big concern is that taxpayers will owe the IRS more because of a new limit on how much they can deduct for paying state and local taxes.

Officials in New Jersey and California have floated the idea of letting people make charitable contributions to the state rather than paying certain taxes. The idea is that the donations would still be deductible.

Connecticut and New York lawmakers are exploring switching from income taxes to payroll taxes on employers, who could still make deductions.

With legislators starting their 2018 sessions and governors writing state budgets, the response is a political priority.

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Abbey Westbury

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