Q&A: How do federal taxes impact local schools and services?

Increases to the standard federal tax deduction implemented in 2018 were made permanent a year ago, and researchers are beginning to understand the downstream effects on state and local governments. The increased deduction meant many taxpayers received a bigger tax break by taking the standard deduction instead of itemizing their expenses, including state and local taxes (SALT). However, a Penn State research team has found that lower-income taxpayers who take the standard deduction have become more likely to vote against local spending for repairing or building infrastructure or other community services.