As a non American I'm not very aware of internal reforms like this.
And I don't have much to say about it of course.
Could you just confirm if I understand correctly: is the tax plan of Trump to get rid of this deduction?
Yes more less, Trump introduced a Tax Plan that cuts the number of brackets the US taxpayer has to choose from seven income brackets to three brackets for personal income.
The US has three levels of taxing the Local/Municipal Taxes, the State taxes and the Federal taxes.
Trump's tax plan is to simplify the tax code and get rid of a variety of deductions people use to reduce the amount of taxes they pay on the federal/national level.
http://www.businessinsider.com/trump-tax-cut-plan-eliminated-itemized-tax-deductions-2017-4The question is does that result in more growth as states and local governments can increase the taxes they charge and acquire more income from their citizens or less economic growth since the Federal Debt is presumed to grow.
Also does that mean more money in the pockets of the common person or the rich, sort of went at it from an economic angle no need to this is politics so the question from a political view is does this seem smart or stupid.
Pretty Much from a Poli View: Is Trump Smart for Getting revenge through taxes on New York and California or stupid, aka smart politics and positioning since it impacts democrats more and strengthens his base.
http://time.com/money/4756356/trump-tax-plan-state-local-deduction/While undertaking tax reform, the Trump administration has promised to protect two of the biggest individual tax perks: deductions for mortgage interest and charitable giving, which cost the Treasury $68 billion and $51 billion a year, respectively. But a third -- the exemption for state and local taxes -- wasn't so lucky.
Eliminating that loophole could bring in $63 billion a year, yielding more than $600 billion over the next decade.The Times says that
President Trump’s proposed changes to the tax code could increase the deficit by an estimated $3 trillion to $7 trillion over the next decade, according to the Committee for a Responsible Federal Budget, an advocacy group focused on reducing deficits.
https://www.nytimes.com/interactive/2017/04/26/us/politics/what-trumps-tax-proposal-will-cost.htmlWhich side is correct, or just offshoot.