Repealing the cap on the SALT deduction would overwhelmingly benefit the wealthiest households in America.
by Eric Boehm
Reason.com
Before Democrats in Congress can pass a massive spending plan that comes with huge tax increases aimed largely at wealthier Americans, they might have to approve a huge tax break that would almost exclusively benefit the wealthiest Americans.
One of the major stumbling blocks for Democrats as they try to push President Joe Biden’s $3.5 trillion reconciliation bill through Congress is the state and local tax (SALT) deduction, which was capped at $10,000 as part of the 2017 tax reforms. Lifting that cap, or repealing it entirely, has been a major priority for members of Congress who represent wealthy districts in high-tax states, and some Democrats are threatening to withhold their support for Biden’s Build Back Better plan unless it addresses the so-called “SALT cap.”