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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNew York Democrat says SALT deal could be reached this week
Rep. Thomas Suozzi (D-N.Y.) said Monday that he expects there to be some kind of an agreement this week on Democrats' multitrillion-dollar social spending package, including on the state and local tax (SALT) deduction.
Suozzi told reporters that he expects the spending package to be considered by the House Rules Committee as soon as Tuesday. Provisions on the SALT deduction are likely to be added to the bill in the Rules panel.
Republicans created a $10,000 cap on the SALT deduction in their 2017 tax reform law. Democratic lawmakers from high-tax states generally are strongly opposed to the cap, arguing that it hurts their residents and states. But some progressives oppose full repeal of the cap, saying the move would primarily benefit high-income households.
Changes to the SALT deduction were not included in the portion of the spending package that the House Ways and Means Committee advanced earlier this month. However, top Democratic lawmakers have indicated that the SALT deduction cap will be addressed in the final bill.
https://www.msn.com/en-us/news/politics/new-york-democrat-says-salt-deal-could-be-reached-this-week/ar-AAOSVZW
PoliticAverse
(26,366 posts)Lifting the cap would in fact give almost three times as much, as a share of the cut, to the top one percent as the TCJA cuts did as a whole (of course the absolute amount is very much less).
Even with the cap, the SALT deduction remains pro-rich, with around three-quarters of the benefit going to families in the top fifth of the income distribution.
NutmegYankee
(16,178 posts)I get hit with this. An engineer with a 1500 sqft house. It hits tons of middle class people in New England.
And dont bother with a make your taxes lower argument. Lots of small towns with school systems to support, rugged terrain with climate extremes that batter roads, snow removal for those roads which cannot use the same materials as down south.
PoliticAverse
(26,366 posts)NutmegYankee
(16,178 posts)Keep in mind the wages are higher by necessity in this region.
PoliticAverse
(26,366 posts)cap income. I support the SALT cap as it currently is.
Calista241
(5,584 posts)This is basically going to zero out any tax increases on the 1%. We finally get Dem control of both houses, and the rich get another tax cut. WTG team.
It's a $100b / year giveaway to the rich. That's $1.2t tax base over 10 years that would pay for a hell of a lot of stuff.
PoliticAverse
(26,366 posts)Danmel
(4,892 posts)Middle class suburban homeowners pay more than 10000 a year just for school taxes, never mind all the other taxes, Highway, sewer, lighting, trash collection, fire district, libraries, police. We get crushed and we are definitely not the 1%.
MichMan
(11,790 posts)Anything over that is taxed at one's current tax rate.
Someone with 20k in SALT at a 20% tax rate pays $2000 in federal tax on it.