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Opinion: End of Cap on ‘SALT’ Deductions Would Help California Homeowners, But Progressives Oppose

Property tax invoice.Photo courtesy of: San Diego County Tax Collector Office

The House of Representatives has passed President Joe Biden’s $ 1.85 trillion social policy package, but faces a tough slogan in the evenly divided Senate.

White House and Senate Democratic leader Chuck Schumer are being squeezed between a request from two Middle Democratic Senators to trim the package and warnings from people on the left, including Senator Bernie Sanders. .. ..

One specific issue is the multi-billion dollar impact on California. This is a partial abolition of the $ 10,000 cap on income tax deductions for state and local taxes called SALT.

This cap, which is part of the Republican tax reform signed by former President Donald Trump in 2017, has hit high tax states such as New York and California. It indirectly raises federal taxes on their high-income residents, state officials are aloud and worried that they will move to other states with lower taxes or otherwise reduce their tax exposure. Prompted to.

California Franchise Tax Commission, its income tax collector, Estimated in 2018 The SALT deduction limit will impose an additional $ 12 billion in federal tax annually for Californians.

Opinion: End of Cap on ‘SALT’ Deductions Would Help California Homeowners, But Progressives Oppose Source link Opinion: End of Cap on ‘SALT’ Deductions Would Help California Homeowners, But Progressives Oppose

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