Most Prevalent Deduction is for Taxes Paid, IRS Data Show

Most Prevalent Deduction is for Taxes Paid, IRS Data Show

Zoe Sagalow | Tax Notes

“Alex Brill of the American Enterprise Institute told Tax Analysts that his estimates show that repealing the state and local tax deduction would raise about $1.4 trillion over a decade and could pay for a large reduction in statutory tax rates. “Being the single largest itemized deduction, its repeal can foster significant simplification, as without it more taxpayers will claim the standard deduction,” Brill said. State and local taxes function as payments for consumption, including for schools and emergency services, and there is little reason to treat them differently for tax purposes than other consumer purchases, he added. In 2015 the average amount of taxes paid deductions was about $12,514, and the average amount of taxpayers’ interest paid deductions was about $9,142, the IRS data show.”

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