Democrats Consider Tax Cuts for Many High Earners in New York, New Jersey and California

[PoliticAverse]

5. The SALT deduction primarily benefits the 1%.

The Treasury has been trying to get the SALT deduction eliminated for years.

From 1984:

The current deduction for State and local taxes disproportionately benefits high-income taxpayers residing in high-tax States. The two-thirds of taxpayers who do not itemize deductions are not entitled to deduct State and local taxes, and even itemizing taxpayers receive relatively little benefit from the deduction unless they reside in high-tax States. Although the deduction for State and local taxes thus benefits a small minority of U.S. taxpayers, the cost of the deduction is borne by all taxpayers in the form of significantly higher marginal tax rates.

Low income earners who pay property taxes and don't itemize get NO benefit from the SALT deduction.

The cost to the Treasury of repealing the SALT cap is about $ 85 billion/year.

> Let us get grandfathered into the old way.

There is no more reason to grandfather people affected by the SALT tax change than there is to grandfather a salaried employee affected by an income tax rate increase.

If you want SALT tax reform that doesn't primarily benefit the rich, cap the deduction by personal income and if you are really concerned about low income earners change the tax code and let them deduct state and local taxes even if they do not itemize.