A key part of the 2017 Trump tax cuts was the capping of deductions for state and local taxes (SALT) at $10,000. The large majority of taxpayers never need the $10,000, but wealthy taxpayers in high-tax states are pleading with Republicans to lift the cap and grant them relief.
Budget hawks in the GOP are firmly against it. Without those caps, at least $130 billion to $200 billion would be added to the budget if the cap were raised to $100,000 as the Democrats say is needed.
Even doubling the $10,000 deduction would add up to $32 billion to the budget.
Since 2017, property values have soared, especially in red states, meaning that many more people are now subject to the $10,000 cap. The time seems ripe to raise the cap, but how much is a matter of contention even among those who support raising the SALT cap.
Trump is open to the idea where previously he opposed raising the SALT cap. In a meeting with Republicans from high-tax states at Mar-a-Largo, the incoming president said he wants the party to negotiate a “fair number.” […]
— Read More: pjmedia.com
