I still think the SALT Deduction should have been at least $20,000, not the $10,000 that made it to the final Tax Bill.
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Since there are now fewer people itemizing deductions, it should be possible next time to reduce the SALT deduction ceiling to $5,000 or, better yet, eliminate it entirely.
Disagree...
The limited SALT Deduction goes right to the heart of Middle Class Homeowners who are paying high Property Taxes and State Income Taxes.
CA - Prop 13 limits Property Taxes to 1% plus any Voter Approved Bonded Indebtedness. In our case the effective Rate was 1.25 of Appraised Value. (based on original purchase price with 2% allowable increases in Appraised Value)
The People who recently bought our Home are paying $10,000 a Year in Property Taxes where we were paying only $3,600 because we bought the House back in 1992. Same House, different owners and it eats up the entire SALT Deduction.
That cost us some House Seats IMHO. Two of my former Neighbors in Orange County CA Voted Rat just because of that and there was no way of talking them out of it.
In TX, there is no State Income Taxes but the Property Tax Rates in some areas are 4% with the Homes subject to yearly reappraisals from what I have been told.
All in all, it’s the Middle Class in both Blue and some Red States who are being pinched by the SALT deduction limits.
Everyone here looked at it like it was a great way to punish the Blue States, but it affects both Conservatives and Liberals in those same States. I think the GOP Congress goofed since it took the shine off the Tax Bill Apple.
Absolutely. This deduction was just a sop to get the law passed, it should be eliminated completely.