If you earn $100k and pay $10k in State Tax, your Federal Taxable income is reduced by that amount to $90k (i.e. a $10k deduction). So you effectively pay less Federal Tax.
The SALT cap put a limit on how much you can deduct. So folks paying more State Tax than the limit that previously benefited from deducting that amount could only deduct up to the limit.
You can remove state and local taxes from your federal taxes. Blue states have higher state and local taxes, but also contribute far more and take far less from the federal government. Its messy.
The SALT cap put a limit on how much you can deduct. So folks paying more State Tax than the limit that previously benefited from deducting that amount could only deduct up to the limit.