The Treasury Department has issued final rules that would clamp down on taxpayers trying to circumvent a new cap on state and local tax deductions.

The Tax Cut and Jobs Act, promoted by the Trump administration and passed in late 2017, limits the amount of state and local taxes that can be deducted on an individual's federal taxes to $10,000 a year.

The tax law's SALT deductions, as they are known, caused a lot of upset in high-tax states, such as New York, New Jersey and California, where residents had previously benefited from being able to deduct much more.

It also became a highly politicized issue as many of high-tax states tend to vote for Democrats.

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