High tax states want a repeal of the cap on deductions for SALT

 Epoch Times:

A bipartisan group of lawmakers is pushing to eliminate the cap on federal tax deductions for state and local taxes (SALT) but many argue that such a move would massively favor the rich.

For decades, the ability to deduct SALT has been an important tax break for taxpayers who itemize deductions on their federal income tax returns. The 2017 Tax Cuts and Jobs Act (TCJA), however, limited the deduction for SALT payments to $10,000 a year. Any state and local individual income or property tax payments in excess of that amount are no longer deductible by taxpayers.

Blue states, especially those with higher individual income and property tax rates, have objected to this cap and some even tried to create tax maneuvers to avoid this limitation.

Democrats last year proposed lifting the cap on the SALT deduction for 2020 and 2021 as part of a COVID relief package. They argued that lifting the cap would provide relief to people hit hardest by the virus, especially in devastated cities such as New York.

A growing number of House Democrats have recently indicated that they wouldn’t support Biden’s infrastructure and tax plan unless the cap is repealed.

Last week, more than 30 bipartisan members of the House formed the SALT Caucus to push for a repeal of the $10,000 limit passed in TCJA. Caucus members stated that the move would provide tax relief to “hard-working middle-class families.”

“It is high time that Congress reinstates the State and Local Tax deduction, so we can get more dollars back into the pockets of so many struggling families—especially as we recover from the pandemic,” SALT Caucus co-Chair Rep. Josh Gottheimer (D-N.J.) said in a statement. The group said it would seek ways to restore the SALT deduction.

Another co-chair of the caucus, Rep. Young Kim (R-Calif.) stated that Californians have been burdened by high state and local taxes. Her district would pay on average more than $640 million in the 2022 tax year due to the SALT cap.
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High tax states are not providing better government than low tax states.  In fact, they are operated worse and can't even balance their budgets despite having higher taxes.  What these irresponsible states are doing is mooching off of low-tax states.