February 2, 2018

Dallas Morning News: Look out N.Y., L.A. and Chicago: The New Tax Law Makes Dallas even stronger

media mention

Most of the individual and family savings from tax reform are going to high earners. In Texas, three-quarters of the upside will be claimed by taxpayers earning over $106,000, according to the Institute on Taxation and Economic Policy, a “nonprofit, nonpartisan” research firm in Washington.

To offset those gains — and the hit on the deficit — the law includes a $10,000 cap on deductions for state and local taxes. That feature can punish some residents in high-tax states but has a more muted effect here, even with property taxes rising fast.

The cap on the so-called SALT deduction will affect just 3 percent of Texas taxpayers in 2019, about 386,000 individuals and families, ITEP estimated. That compares with 9 percent of filers nationwide. In New York and California, 16 percent of taxpayers will face the cap — and their hit will be much higher. Read more