T.A. DeFeo | The Center Square
The $1.75 trillion “Build Back Better” social spending bill the U.S. House passed would restore the State and Local Tax Deduction (SALT).
The 2017 tax law passed under President Donald Trump capped deductions for state and local taxes paid at $10,000 per year through 2025. Since that time, New Jersey state and federal politicians have worked to reinstate the deduction.
The legislation would increase the cap to $80,000, CNBC reported. It faces an uncertain future in the U.S. Senate.
The SALT “cap has unfairly double taxed families across the country and worked to defund our states’ critical priorities,” U.S. Reps. Bill Pascrell Jr., D-New Jersey; Tom Suozzi, D-New York; Josh Gottheimer, D-New Jersey; and Mikie Sherrill, D-New Jersey, said in a joint statement.
“The bill we just passed in the House would effectively eliminate the impact of the SALT cap for virtually every family we represent, putting money back in the pockets of hardworking, middle class families in New Jersey and New York,” the lawmakers added. “Simultaneously, it will ensure our communities are able to make the critical investments we need, like funding the best public schools in the nation and supporting our law enforcement and first responders.”
However, critics of the deduction deride it as a tax break for more affluent residents. A recent analysis from the left-leaning Institute on Taxation and Economic Policy (ITEP) said its repeal “would worsen racial income and wealth inequities.”
U.S. Sen. Chuck Schumer, D-New York, has indicated he wants to act on the legislation before Christmas, The Wall Street Journal reported.
2 thoughts on “‘Build Back Better’ would reinstate SALT deduction”
Pelosi needed the votes of the northeast blue states, which have high taxes, such as Vermont, to pass a monstrous $2 TRILLION pork-laden, socialistic, spending bill, which will drive already-high inflation from the present 6 percent to 8 to 10 percent
A higher-income family is allowed to deduct from taxable income only $10,000, even though it has, say $80,000 of deductible expenses, according to existing law.
That $10,000 deduction would save such a family about $3,000 in federal taxes
If that same family were allowed to deduct $80,000 from its taxable income, it would save about $24,000 in federal taxes.
The net effect is $275 BILLION TAXCUT for millions of well-off families, which will be added to the US national debt.
All other families, such as the working stiffs, get scr…d big time, because they will get only a small piece of COAL in their stockings for Christmas
I can FEEL the Burn.
The solution is to turn out to vote EN MASSE, so any fraudulent counting will be overwhelmed.
Argh. Such liars. The restoring of this gift to the blue state 1% is just that. It will have little effect on the “hardworking, middle class families”. When the standard deduction was almost doubled in 2018, it allowed almost 3/4 of Schedule A filers to take the standard instead. Most did not come close to the new standard even with the full SALT deduction. That’s #1.
Lie #2 is the contention that the “cap has unfairly double taxed families across the country …”. Do these reps even understand what they are saying ? This is simple logorrhea, Democratic logic I guess. Removing a deduction is a form of unfair taxation ? The Dem/Prog legislature didn’t think so when they removed ALL itemized deductions a few years back.What a clown show.
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