IRS Moves to Block New York, New Jersey Effort to Skirt State Tax Cap

The video discusses changes in federal tax law, limiting state and local tax deductions to $10,000. It explores how states like New York and California, with high taxes, are affected. The video explains a workaround where excess taxes can be paid to state funds as charitable contributions, which are deductible. However, the IRS challenges this, claiming these aren't true charitable deductions. States are contesting this in court, arguing political bias. Potential workarounds and the role of Congress in changing laws are also discussed.

What concerns do blue states have regarding the targeting of tax law changes?

What potential actions could states take if they cannot challenge the tax law changes through the courts?