Latest news with #hightaxstates
Washington Post
23-05-2025
- Business
- Washington Post
How would the Big Beautiful Bill affect SALT? What you need to know.
As the Republican Party's signature economic bill heads to the Senate after being passed by the House, one of the key sticking points is a cap on state and local tax deductions that hits Americans in high-tax states especially hard. Lawmakers in 2017 set that deduction limit, known as the SALT cap, at $10,000 to offset Trump's tax cuts for individuals and corporations. But some lawmakers in high-tax states — Democrats and Republicans alike — have lambasted the limit as a burden on their constituents. In effect, the cap meant some taxpayers who itemize get a smaller deduction and bigger tax bill.
Bloomberg
21-05-2025
- Business
- Bloomberg
Republicans Have a SALT Tax Deal. Who Will Benefit?
For as long as Americans have paid federal income taxes, they've been able to subtract some of what they pay to their state and local governments from their taxable income. This federal deduction for state and local taxes — the SALT deduction, for short — has a big influence on how the tax burden is divided. It tends to help taxpayers in wealthier, more urban states, where sales taxes are higher and real estate costs more. President Donald Trump's first-term tax law, approved in 2017, capped the SALT deduction at $10,000 — the first across-the-board cap on the deduction in its history. In the years since, removing or raising the cap has become an important cause for lawmakers representing districts in high-tax states.
Bloomberg
21-05-2025
- Business
- Bloomberg
Trump Tax Bill Threatened by Ultraconservatives After SALT Deal
Conservative hardliners threatened to block President Donald Trump's massive tax and spending package just as an agreement to increase the state and local tax deduction removed a key obstacle. House Speaker Mike Johnson announced Wednesday that he had an agreement with lawmakers from high-tax states to increase the limit on the SALT deduction to $40,000 and shortly after ultraconservatives lashed out.
Bloomberg
21-05-2025
- Business
- Bloomberg
Republican Hardliners Threaten to Block Deal on Trump Tax Bill
Conservative hardliners threatened to block Republicans' massive tax and spending package, jeopardizing passage of President Donald Trump's signature economic legislation. Ultraconservatives lashed out shortly after House Speaker Mike Johnson announced he had an agreement with lawmakers from high-tax states to increase the limit on the deduction for state local taxes to $40,000.
Wall Street Journal
20-05-2025
- Politics
- Wall Street Journal
Where Rep. Mike Lawler Goes Wrong on SALT
In his May 17 letter 'Why I Won't Give In on the SALT Deduction,' Rep. Mike Lawler (R., N.Y.) writes that the $10,000 cap on deductions for state and local taxes was 'an arbitrary pay-for in the 2017 tax bill.' I respect my congressman, but this isn't true. The cap was a counterweight to keep a lid on high-tax states from increasing their burden on working families with impunity. This is one of the only mechanisms the federal government has to do so. If New York doesn't work to temper its tax environment to meet that threshold, it will continue to suffer severe outmigration. In holding out for a higher cap for the SALT deduction, Rep. Lawler is choosing not to look at the problems affecting his district and state. If 74% of voters want to get rid of 'double taxation' as he claims, perhaps state pols should stop taxing everyone so much. Responsible states shouldn't be punished for Albany's profligacy.
