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Popular deduction in Maryland would be ended by Trump tax plan

April 27th, 2017 by WCBC Radio

A federal tax outline unveiled Wednesday by President Donald Trump's administration calls for ending the deduction on state and local taxes, eliminating a provision used more in Maryland than anywhere else in the nation.

Forty-five percent of Maryland filers took the state and local tax deduction in 2014, the highest share in the country, according to an analysis by the Tax Policy Center. The average amount of the deduction was $12,400, according to the analysis.

In a briefing about the proposal Wednesday, Treasury Secretary Steven Mnuchin said the plan calls for eliminating all personal income tax deductions except for those granted for mortgage interest and charitable deductions. In exchange, the administration plans to lower the overall tax rate.

The plan will "make business rates competitive, bring back trillions of dollars to create jobs, simplify personal taxes, create a middle-income tax cut," Mnuchin said at the White House. "So those core principle are non-negotiable. And that's something that we all feel strongly about."

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