OUR ADVICE: Democrats should leave SALT ceiling alone |
This is why some members of the Democratic House are trying powerfully to reduce the tax bills of some of their wealthy constituents.
While House Ways and Means did not address SALT as a whole of tax proposals, committee heads on Wednesday released a statement promising to enact “meaningful SALT relief that is so essential for our middle class communities and us. work daily towards this goal. “
It is misleading for lawmakers to portray the middle class as the reason for repealing the reduced SALT deduction. About 87 percent of taxpayers take the standard deduction because they don’t have enough deductions to itemize.
According to the Tax Foundation, employees with incomes over $ 100,000 receive more than 88% of SALT benefits. Those who stand to gain the most from their property tax deductions have expensive homes in prosperous neighborhoods.
Politicians in heavily taxed blue states have every reason to want SALT to cushion the blow to their taxpayers. With their reduced federal tax cuts, voters in these states are more likely to push governors, state legislators, mayors, and city council members to reduce their state and local taxes.
With a higher SALT deduction, the federal government effectively subsidizes high taxes. It’s unfair to taxpayers in low-tax states with well-managed budgets like Iowa, Nebraska, and South Dakota. (Some states, like South Dakota, don’t even have income tax.)