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Rich People Find It Hard to Flee States Targeted by SALT Limits

March 4, 2019, 9:37 AM

This tax season, many wealthy Americans are getting an expensive jolt.

The Republican tax overhaul signed by President Donald Trump more than a year ago provides plenty of perks for the rich. But not all well-off folks are treated alike under the new law. A controversial provision that helps pay for huge corporate tax cuts punishes residents of states with higher income taxes—most of which, but not all, lean Democratic.

Illustration: Jack Sachs for Bloomberg

By setting a $10,000 cap on how much Americans can deduct in state and local taxes, or SALT for short, Washington created a pricey problem for the privileged in ...

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