Democrats in High-Tax States Plot to Blunt Impact of New Tax Law<br />“Maybe people are starting to realize,” Mr. Pennacchio said, “you’ve got to tiptoe<br />when it comes to raising taxes, because it can do more harm than good.”<br />Still, lawmakers from both parties said it would be hard to cut taxes enough to offset the impact of the new tax law.<br />contribution to state<br />Then, the full $30,000 is deductible, as it was<br />How One State Tax Option Might Work<br />The family pays $30,000 in state taxes, all of it deductible from federal income taxes.<br />Prior to the new tax code<br />The family pays $30,000 in state taxes, all of<br />it deductible from federal income taxes.<br />How One State Tax Option<br />The new tax law caps state and local tax deductions at $10,000; they were previously unlimited.<br />Mr. Sweeney, the Senate president, said that because of the new tax law, he had<br />“pressed the pause button” on a plan to impose a new tax on millionaires.
