SALT Cap Showdown Complicated by Being Knotted With Hated AMT

Millions of people in high-tax states face their own fiscal cliff next year—when both a limit on their state and local tax deductions and higher exemption levels for an unpopular levy meant to ensure the wealthiest pay their fair share will be up for debate.

The SALT cap created by Republicans’ 2017 tax law has drawn ire from lawmakers from states like New York, New Jersey, and California on both sides of the aisle, who’ve since sought and failed to get rid of the limitation that disproportionately impacted their constituents.

The law, though, also threw a bone to those taxpayers ...