Maryland residents salty about the loss of a popular tax deduction could get some relief. Maryland Attorney General Brian Frosh (D) joined the states of Connecticut, New Jersey and New York in suing the Trump administration, alleging that a new cap on the State and Local Tax (SALT) deduction will disproportionately harm taxpayers in those states.
In Montgomery County, 266,400 households claimed a SALT deduction in 2015, with the average deduction of $18,247, according to the National Association of Counties.
The Tax Cuts and Jobs Act of 2017 passed by Republicans in Congress last year limits the deduction to $10,000, meaning Marylanders who pay more than that in state and local taxes could see their tax bills go up.
The lawsuit argues the new SALT cap was enacted to target Maryland and the other states and that the states will be disproportionately harmed fiscally.
More than 500,000 Marylanders will lose $6.5 billion in SALT deductions—an average of $11,800 per taxpayer, Frosh said, citing an analysis earlier this year from the Maryland comptroller’s office.
Click here to read the rest of the article written by Danielle E. Gaines over at Bethesda Magazine