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Democrats in high-tax blue states are already plotting ways to avoid the new tax law, hoping to seize on gimmicks that will allow their residents to cut their federal tax burden without costing the states themselves any money.

The Democrats are trying to get around a new $10,000 cap on how much of their state and local taxes residents can write off on their federal forms. High-tax states fear their residents will quickly top the $10,000 limit, leaving them grumbling over their higher tax bills.

New York Gov. Andrew Cuomo has suggested switching some of his state’s tax collections from personal income to a corporate payroll tax, saying those aren’t subject to the $10,000 cap.

New Jersey and California Democrats, meanwhile, suggested allowing residents to pay some of their state taxes as charitable deductions, saying they could then claim the federal tax deduction for money they’re paying to the state. Read more

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Democrats in high-tax blue states are already plotting ways to avoid the new tax law, hoping to seize on gimmicks that will allow their residents to cut their federal tax burden without costing the states themselves any money.

The Democrats are trying to get around a new $10,000 cap on how much of their state and local taxes residents can write off on their federal forms. High-tax states fear their residents will quickly top the $10,000 limit, leaving them grumbling over their higher tax bills.

New York Gov. Andrew Cuomo has suggested switching some of his state’s tax collections from personal income to a corporate payroll tax, saying those aren’t subject to the $10,000 cap.

New Jersey and California Democrats, meanwhile, suggested allowing residents to pay some of their state taxes as charitable deductions, saying they could then claim the federal tax deduction for money they’re paying to the state.