Posted on 05/12/2025 4:04:31 PM PDT by ProgressingAmerica
* Currently, there’s a $10,000 limit on the federal deduction on state and local taxes, known as SALT, which will expire Dec. 31, 2025, without action from Congress.
House Republicans are calling for a higher limit on the deduction for state and local taxes, known as SALT, as part of President Donald Trump’s tax and spending package.
The House Ways and Means Committee, which oversees tax, released the full text of its portion of the bill on Monday afternoon. The SALT provision would raise the cap to $30,000 for those with a modified adjusted gross income of $400,000 or less.
However, the SALT deduction limit has been a sticking point in tax bill negotiations and the provision could still change significantly. The committee is scheduled to debate and vote on the legislation on Tuesday afternoon.
(Excerpt) Read more at cnbc.com ...
That should not be considered our problem.
Hush. We have enough of the nutjobs moving south without any more incentives.
No. Don’t raise it. Cut it by $2K.
I’m in a swing state. This would help me significantly. However, the problem is that the blue states actually get a pass on high state taxes because the federal SALT deduction increase mitigates the blue state tax bite so the blue state Democrats end up raising taxes even more. And the idiots keep voting for these same people so IMO they deserve no increase in the SALT deduction.
What the GOP is trying to do here is bolster support in suburban swing districts in "blue" states where taxpayers were totally screwed by the 2017 tax reform -- which helped push Republicans out of many House seats in 2018. Getting Democrats on the record to vote against this tax bill could pay dividends for the GOP in the 2026 midterms.
Californians ruined Colorado, a state that used to be red.
So it's a small sacrifice for us to subsidize the tax bills of Californians as long as they're staying in their state.
I don't like it. But I see your point.
I suppose we are trying to appeal to "Mitt Romney voters".
Raising the SALT deduction limit should be tied to Medicaid reform.
Start with $2/month Medicaid premiums and raise them by $2 for each month and each ER use. The time-based Medicaid premium amount to not exceed the monthly Medicare premium.
Premiums to be lowered by $1 for each week of subsequent private PPACA-scope coverage.
I live in NY...i would benefit significantly from the increased SALT deduction on my Fed taxes...
I have always said publicly and on social media I AM DEAD SET AGAINST IT!!!
No reason low tax states should subsidize blue crap holes like NY...
I assume we have a couple of House Republicans from NY and CA so they want to raise the SALT deduction limit.
Somehow it’s not impacting Californians at $10,000. Probably because many of the Gen X and Boomers have owned homes for 15-40 years and their property taxes are fixed to their cost basis which is way way lower than if they were assessed today. Thankfully we passed an amendment that doesn’t allow them to re-assess the house value unless it is sold or transferred so if you stayed put the last few decades you are paying very little.
But the crazy increase in prices of homes is keeping Gen Z and Gen Y out of the market almost entirely; and also keeping older folk from ever selling. Why sell a home that is paid off (or near paid off) that has a tax rate of $8k or $10k a year, to flip to something -— even if you sold for $2 million and bought an $800,000 condo all cash your property taxes will be almost $20,000 a year. And that, at $10k, you cannot deduct. Too much tinkering. I am glad that the state cannot tax people out of their homes in retirement. But it’s going to fall apart eventually because 1) Gen Z and gen Alpha are fewer in numbers than Gen X and boomers and 2) those younger folks are going to go to other states.
Screw those GOP reps in the blue states. They would rather help voters there than help seniors with social security tax relief across the entire country.
Ditto. I live in DC, which is a very high tax jurisdiction. I would probably benefit from this. I don’t care. Double ditto.
We should not be subsidizing the enemy. Going full retard on taxation is not 4D chess. Pander somewhere else.
Yes- Nicole Maliatakis has been pushing for SALT deduction increase. I’ve been vocal on her page why they should be against it.
I think Mike Lawler is pushing for it as well.
She is trying to get reelected by listening to her constituents so I can understand that.
Why are you okay with paying federal taxes on the money used to pay state taxes?
Yeah. I don’t see why lower-income people in red states should subsidize wealthy people in blue states. But Trump us pushing this, so we will.
What many don’t understand is the salt deduction was limited by alternative minimum tax which calculates income with no salt deductions. It looks good on the tax form but hidden in the tax calculation it essentially gets removed.
This attitude is exactly why the GOP cannot maintain more than a razor-thin margin in the House of Representatives at best.
I have news for you: There aren't enough solid "red" districts in the U.S. to maintain control of the House.
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