the tax deduction cap was supposed to do what? Cause states to lower taxes? Not happening. It was a dumb idea if that is what it was for. If it was to raise more federal revenue it is just another tax increase.
Doing away with the cap will return to encouraging states to raise their state tax because they can say “Yes, we are upping the State tax but you get it back when you file federally.”
In practice, transferring a portion of their state tax burden to the fed gov deficit spending.
Trump MUST win, so okay, I guess...
If I recall and can articulate it correctly, the cap was to stop subsidizing irresponsible spending states with responsible spending states money.
If California can have a state tax of 20% and the fed tax allows you to deduct all or part of that, then California has no incentive from angry tax payers to curtail its spending.
If another state has 5% state tax and its taxpayers are getting little or no deduction from their federal tax, they are in a sense being penalized by Uncle Sam for the 'responsible' actions of their state. That's backwards.
Whether they lower taxes or not is their own business, and if their voters don’t like the tax rates, they should wake the hell up and exercise their power to get them lowered. That wasn’t the purpose of the SALT cap. Rather, in prevents people in well run states from subsidizing the profligate governments of other states. I live in CA, would benefit from lifting the cap, but I don’t want it lifted
SALT is a good idea. Why should a low tax state usually conservative give high tax states usually liberal a 30 - 50% tax break?
NY citizens wete able afford to heavy taxes because they got a federal income tax subsidy. SALT is actually helping drive people out of high tax states. It also helped crimp revenue flowing to a bunch of prog liberal politicians pet causes.
This was idiotic on Trumps part. He will not pick up any electoral votes. He is not running in a national popularity contest.
The cap was a major strategic mistake by Trump. It alienated suburban residents in key swing states such as Pennsylvania, Wisconsin, Michigan, and elsewhere. It also undermined rhe Republican brand and image as tax cutters.
It harmed a lot of middle income families whose chief investment is their home. It simply wasn’t fair. And it was harmful to people....like my daughter and her family...