Most states and the District of Columbia link to the federal tax system by incorporating a range of federal tax expenditures—exclusions, deductions, and credits—into their state codes. These connections mean that changes at the federal level can affect state revenue, increase total federal taxes paid in some states, and decrease them in others. In addition, because federal tax expenditures are distributed unevenly across the states, changes to the federal code will affect individual states differently.
To maximize the impact of higher education investments and achieve desired policy goals, policymaker should have knowledge of the full range of assistance provided to institutions and students. This means having an understanding of the billions of dollars made available through spending programs and the tax code.
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Is the average state and local tax deduction in your state over the new $10,000 cap?
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