The SALT tax deduction is a handout to the rich. It should be eliminated not expanded
The politics of tax policy can be as hard to understand as the tax system itself. The latest case in point is the current push from Democrats to lift the cap on the federal tax deduction for state and local taxes (SALT)—which would be a massive tax cut for the rich.
Before the 2017 Tax Cuts and Jobs Act (TCJA), taxes paid to state and local governments could be deducted against Federal income taxes. But the TCJA capped this benefit at $10,000 a year, hitting the wallets of high earners living in high-tax cities and states.