N@N

What's Going On With the SALT Deduction?

The article from MSN discusses the ongoing debate over the State and Local Tax (SALT) deduction, which was capped at $10,000 by the Tax Cuts and Jobs Act of 2017. This cap has been a point of contention, particularly in high-tax states like New York, New Jersey, and California, where residents feel disproportionately burdened. Efforts to repeal or modify this cap have been met with resistance due to concerns about the cost to the federal government and the potential benefits to wealthier taxpayers. Recently, there's been a push in Congress to revisit the SALT deduction, with some lawmakers proposing to increase the cap or make it more flexible. However, these proposals face challenges in gaining bipartisan support, as Democrats and Republicans have differing views on tax policy and fiscal responsibility. The article highlights the political and economic implications of altering the SALT deduction, including its impact on state and local government revenues and the broader tax landscape.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/taxes/what-s-going-on-with-the-salt-deduction/ar-AA1z9xJF ]