The SALT Battle
President Trump’s suggestion that Congress eliminate the state and local tax (SALT) deduction has panicked New York legislators, who depend on the SALT deduction to lighten the state’s tax burden on residents. Arguments for and against the deduction touch on questions of federalism and double taxation. One thing for certain, though, is that New York State taxes are much too high.
The Facts You Need to Know
SALT: The SALT deduction disproportionately benefits taxpayers in six high-tax states: New York, New Jersey, California, Illinois, Texas, and Pennsylvania. Read more.
Misleading: Arguments that low-tax states tend to be net “recipients” of federal aid ignore the fact that most funds flowing from Washington to the states are for entitlements, like Social Security. Read more.
Burdensome: Many high-tax state residents have moved out to escape the tax rates. Read more.
“I bet you 98% of the people in my district are gonna take the standard deduction. So they’re not gonna lose anything.”
The Past is Present
“In Mario Cuomo’s last year as governor, New Yorkers’ combined state and local tax burden was 13.7 percent of their total income – fully 3.2 percentage points above the national average, according to the nonpartisan Tax Foundation.”
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