Latest news with #SALTCap
Wall Street Journal
21-07-2025
- Business
- Wall Street Journal
Taxpayers Should Beware the Costly SALT Cap Phaseout Zone
Right now, people making more than $500,000 a year are sitting pretty. They are in the 32% federal tax bracket and probably loaded with mortgage interest. They pay an abundance of state and local taxes, and they might even make a few donations to charity. Excited to finally itemize $40,000 of their state and local taxes for a fat tax deduction, they fail to spot the trouble ahead. Trouble is coming, however, and it lies in the SALT Cap Phaseout Zone. The problem arises when the effective marginal tax rate on their next dollar of income increases from 32% to 41.6%, which they will discover next April. Here's how this happened. High-earning residents of New York, New Jersey, California and other high-tax locales are tempted to cheer now that Congress has raised the cap on state and local tax deductions. Ever since the Tax Cuts and Jobs Act capped these deductions at $10,000 during President Trump's first term, politicians from high-tax states have fought to undo it. They've now achieved a partial victory: The One Big Beautiful Bill Act raises the cap to $40,000—at least temporarily. But hold the champagne. This relief comes with a hidden tax hike.
Bloomberg
15-05-2025
- Business
- Bloomberg
SALT Caucus Holds Out on Tax Bill Support
"Balance of Power: Late Edition" focuses on the intersection of politics and global business. On today's show, Rep. Blake Moore (R) Utah discusses the US House Ways and Means Committee passing its tax bill along party lines without resolving the SALT cap. Jen Gavito, The Cohen Group Senior Advisor, talks about the significance of President Trump meeting with Syrian Leader Ahmed Al-Sharaa in Saudi Arabia. Rohit Kumar, PWC Washington National Tax Officer Principal & Co-Leaders shares whether or not the SALT Cap will make or break Trump's tax bill. Representative Nick LaLota (R) New York discusses how the tax cuts members of the House want in the tax bill will not be extended if the tax cap of SALT is not raised. (Source: Bloomberg)
