SALT Cap Confounds Doomsayers as Fears of Exodus Prove Overblown
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Contrary to the dire predictions at the time, the massive overhaul of the nation’s tax code during Donald Trump’s presidency had a negligible initial impact on the nation’s domestic migration patterns, new data from the Internal Revenue Service show.
The Tax Cuts and Jobs Act of 2017 capped the deduction on state-and-local taxes at $10,000, further increasing -- at least for top earners -- the overall tax savings of states such as Florida and Texas over New York or California. The change prompted concerns that there would be a wealth exodus from traditional finance and technology hubs and an accompanying windfall for the nine states without a wage tax, which include the Sunshine and Lone Star states.