WASHINGTON—Contrary to standard Democratic talking points, rich people in high-tax states such as New York, New Jersey, and California will likely pay higher federal taxes under the new tax code than under the old law.
The new cap on deductions of state and local taxes (SALT) may increase the tax burden for residents of the high state- and local-tax states who earn more than $500,000, according to a report titled “Rich States, Poor States,” published by the American Legislative Exchange Council (ALEC).
