This is who benefits from repealing the SALT cap - http://www.crfb.org/blogs/repealing-salt-caps-would-cost-another-500-billion … https://twitter.com/jimtankersley/status/1244766430312136704 …
Posted on 03/31/2020 9:07:20 AM PDT by jazusamo
As Congress’ dual chamber effort to pass an economic relief for Americans affected by COVID-19 continues, with another phase of stimulus relief in talks, Speaker of the House Nancy Pelosi is considering lifting the State and Local Tax (SALT) cap. The limit was a key part of the 2017 Tax Cuts and Jobs Act, and caps the ability to deduct state and local taxes from federal taxes at $10,000. A handful of blue states with high taxes, including New York, Connecticut and New Jersey, have sued to repeal the SALT cap, as the cap affects wealthier filers the most.
Sen. Chuck Grassley (R-IA), Chairman of the Senate Finance Committee, told Fox news that a repeal of the SALT cap was a “nonstarter:”
"This is a nonstarter. Millionaires don’t need a new tax break as the federal government spends trillions of dollars to fight a pandemic," he said.
Congress’ Joint Committee on Taxation found last year that American households earning $1 million per year or more would overwhelmingly see the benefits of a SALT cap repeal, with federal revenue declining by $77 billion if the cap is lifted. A repeal of the SALT cap would benefit the wealthiest Americans, not working class families, as Speaker Pelosi claims it would.
This is who benefits from repealing the SALT cap - http://www.crfb.org/blogs/repealing-salt-caps-would-cost-another-500-billion … https://twitter.com/jimtankersley/status/1244766430312136704 …
House Democrats in wealthy swing districts floated a repeal of the SALT cap in 2018, but Republicans stand behind the provision, as it overwhelmingly helps middle-class families.
My family are impacted by this SALT cap here in California and even we would have a tough time defending its repeal, especially as part of an emergency stimulus package. Cut payroll taxes temporarily, if Congress wants to take meaningful action.
At first glance I thought this is about as dumb an idea as Pelosi could have floated at this time -- not because wealthy people don't want a tax break, but because taxes are probably the last thing on the minds of most people.
But then I realized why Pelosi is proposing this: Because the COVID-19 outbreak in these disease hotspots simply adds to the SALT cap as a major incentive for these wealthy taxpayers to flee from these states.
I think you have a good point, Pelosi is looking out for the leftist bastions in the country with this in mind.
Ny property taxes are high. Homes in minority neighborhoods with bad school districts pay over 10k on their homes. These are neighborhoods I would not choose to live in. The limit should be raised maybe 10k to 15k.
NJ makes that look cheap
Saw a listing for a 4 bedroom home 2.5 baths 2 car garage on .25 acre lot in East Windsor New Jersey, yearly property taxes: $18,000! Some listings were at 20K
r. Millionaires don’t need a new tax breaI”
He’s talking about middle class Republican homeowners in high tax states. He doesn’t want them to get tax relief on their high property tax bills
Meanwhile, as an Iowa farmer, does he collect farm subsidies?
At least thats a good neighborhood. Im talking 12k 14k taxes in Hempstead. Rest of country doesnt understand. We are not all millionares.
The SALT cap affects the upper middle class, not the RICH. They should at a minimum move up the cap number from 10k to 20 k.
I never consider East Windsor a “good neighborhood” it is ok, but I would take Cranbury, West Windsor, Monroe, Millstone, over East Windsor/Hightstown any day of the week, even if it means buying a smaller house or spending more money. Millstone is generally the better bargain, lower taxes, larger homes, better schools, rural etc, but farther from the Turnpike though.
I would raise the cap to 15K at least but that would be all I would do.
The average property tax in New Jersey is over $9K
I agree. I’m in Upstate. 10k is too low for two people working with a mortgage and two kids in college. This group gets no breaks.
I go just over the 10k limit here in California, and I DO NOT want it repealed.!!
And, add insult to injury, no $2400 for our household. The cost of living and salaries are higher in many states, the cookie cutter income cutoff is also discriminatory. Seriously, 100k income makes someone RICH? I don't think so.
Why not have these states lower their taxes so more people don’t need the rest of the country paying for their bloated state government.
Guess I am showing my age. My first thought was Strategic Arms Limitation Talks.
[He’s talking about middle class Republican homeowners in high tax states. He doesn’t want them to get tax relief on their high property tax bills]
https://dqydj.com/income-percentile-by-state-calculator/
Median household income would be $74K.
LOL! I’d forgotten about those talks, maybe I’m slipping. :^)
What? The SALT cap applies to all property owners, regardless of income. It’s a cap on how much of your local and state tax bills you allowed to deduct when calculating your federal income tax. It hits Republicans hardest (if they live in high tax states) because they live in nicer neighborhoods on average so their property taxes are higher on average. The SALT cap limits the amount of those taxes that they can deduct when sending money to the Insurance IRS and the greedy b-stards in the federal govt
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