According to a report at HuffPo, over 11 million taxpayers lost $323 billion in tax deductions in the first year under President Donald Trump’s tax plan that also saw refunds go down.
The report states, “The deduction wallop detailed in the government report centers on capped deductions for state and local taxes — including real estate taxes. Formerly all local taxes could be deducted for federal taxes; now it’s capped at $10,000, which particularly hurts homeowners in major metropolitan areas — especially in the Northeast and California — where housing tends to be more expensive. “
The HuffPo notes that deduction cap was used to help pay for massive tax cuts for corporations which saw their tax rates cut 40 percent — from 35 percent to 21 percent.
The report is based upon “an audit conducted by the Treasury Inspector General for Tax Administration that examined Treasury Secretary Steven Mnuchin’s efforts to block local governments’ attempts to stop the federal government from taking an extra bite out of community residents.”
Additionally, taxpayers have seen refunds plummet 17 percent based upon filings in the first three weeks of tax season.
You can read more here.