Lack of SALT deal could doom GOP's 'big, beautiful bill'

[Yo_Mama_Been_Loggin]

By Froma Harrop / Creators.com

At least six congressional Republicans are demanding a radical fix in the 2017 tax law targeting residents of high-income states. If they don’t get it, they may sink Donald Trump’s tax-and-spending package, his “one big beautiful bill.”

And who can blame these reps from New York, New Jersey and California? At issue is the unfair cap on the state and local taxes (SALT) their constituents may deduct from federally taxable income. The SALT deduction, unlimited before 2017, was set at a maximum $10,000.

What made it sweet to other Republicans was that it paid for some of those tax cuts by milking taxpayers in wealthier Democratic states. And that has made voters in key suburban districts sore.

What makes this attack on the SALT deduction outrageous? For starters, it taxes income that Americans have already paid in taxes. Secondly, incomes in these states are higher because their everyday costs are higher. Teachers, road workers and other public employees must be paid more just to maintain the living standards enjoyed elsewhere.

https://www.heraldnet.com/opinion/harrop-lack-of-salt-deal-could-doom-gops-big-beautiful-bill/

[MichMan]

1. The last I heard, some were suggesting a $400,000 income cap on being able to deduct SALT

Sounds fair. That would provide a tax cut to higher middle income earners while not being a windfall for the wealthy.

Never understood, how are retirees able to pay tens of thousands annually in property taxes in some states? That would be half of my SS income, not giving me much left to live on.