Higher State and Local Tax Deduction Subsidizes High-Tax States

Higher state and local tax deduction subsidizes high-tax states

Congress is developing the next budget, and politicians on both sides of the aisle are debating whether to increase, decrease or even eliminate the state and local tax (SALT) deduction. In Froma Harrop’s May 15 column, "Republicans must fix unfair…

A More Generous SALT Deduction Cap in the Big, Beautiful Bill Would Cost Revenue and Primarily Benefit High Earners

Letting the SALT cap slip further upwards would undercut the TCJA’s long-term legacy, worsening the fiscal outlook of the tax package and providing an unneeded benefit to higher earners.

Who benefits most from the state and local tax deduction and why raising the cap is contentious

Increasing the $10,000 cap on the state and local tax deduction could benefit millions of tax filers.