September 20, 2024

House lawmakers are using former President Donald Trump’s own words as leverage to pressure their colleagues into preserving the original state and local tax deduction, with a fight set to take shape next year.

The SALT deduction allows tax payers to deduct up to $10,000 of property, sales or income taxes that have already been paid to state and local governments. Historically, most of the tax payers who claim the deduction reside in high tax states such as New York, Connecticut, New Jersey and California.

But the cap on SALT became law when Trump was president and after he signed his $1.5 trillion tax bill in 2017, using the new version of the deduction as a pay for method. There was no cap on SALT prior to the Trump tax bill.

Read more:

https://www.cnbc.com/2024/09/20/house-lawmakers-salt-deduction.html