California Proposes Bill to Permit Donations Instead of State Taxes as Challenge to New Federal Tax Bill

The California legislature has introduced a bill that permits residents to donate to a state “public purpose” fund and receive a dollar-for-dollar tax credit on their returns. This donation is intended to be deductible for federal tax purposes as a means of circumventing the new $10,000 cap on state/local tax deductions included in the recently passed tax bill. White House economic adviser Gary Cohn said the federal government might try to block attempts to circumvent the cap.


Read more: California bill takes aim at new federal tax deduction cap.

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