{ "media_type": "text", "post_content": "For real, why would anyone want to increase the SALT cap? Do y'all just like giving tax breaks to the wealthy and no break to the middle and lower class?", "post_id": "61981fdfe13e7400275d4ad4", "reply_count": 124, "vote_count": 22, "bowl_id": "599555b669a73a0010aab3ac", "bowl_name": "Tax Bowl", "feed_type": "bowl" }

For real, why would anyone want to increase the SALT cap? Do y'all just like giving tax breaks to the wealthy and no break to the middle and lower class?

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Any itemized deduction is there for a reason. Mortgage interest is to encourage home investment. Two people own the same home in same neighborhood and one pays less income Tax because they have mortgage interest. Some agree - some would not. So tax deductions/credits are typically for fairness or incentivize a behavior. Personally - with federal rates. As high as they are - I think it is fair for federal government to not tax income that was used to pay for state and local taxes . We already have a very progressive federal tax system where the more you make the more they take . All the SALT deduction does is say that is you pay state taxes - we won't tax the income used to pay those taxes

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Most people who are substantially over the $10k cap are pretty darn well off, often times at the upper echelons of middle class or higher. Maybe you consider pushing the cap marginally higher, or tying to inflation, but not much. If federal is separate from state, tax the income in each proportionality. If the income taxes or property taxes are too high in your jurisdiction and you feel you aren't already seeing the benefits of the higher taxes, vote with your voice, ballot, or feet, and change your situation. Don't look to the feds to bail you out of the higher taxes.

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PWC 3 - Property is not being taxed twice. Federal government does not assess tax on the current fmv of a property. States such as Washington, Florida don't have state income tax so no double taxation there on income tax. I wouldn't say it's rare to have double taxation. If we want to fund a federal government and state/local governments then taxes will have to be paid to both.... Also to your assessment of who wants this- *coalition of wealthy Democrats and wealthy Republicans.

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Similar to what others have said, I’m generally very progressive politically but support raising the SALT cap. It’s a practical way to help middle class people and, while there are some broader negative implications to this, I think it supports social mobility in terms of people being able to afford to buy a home in a town with good schools. It may disproportionately benefit people in HCOL “blue states” but similarly think that’s a good thing.

I’m all for raising the cap but just to be clear the post above is wrong (like very wrong) about the reasons for the SALT deduction. The general principal behind it is to avoid double taxation on payments for services provided by the taxpayers state or local government (i.e., public transit, schools, police) and has relatively little (if anything) to do with homeownership. The mortgage interest deduction on the other hand is aimed at home ownership - even if it’s fairly well established that all it actually does is increase the square footage of home purchases (rather than help someone who would otherwise not purchase a home afford one).

SALT decreases the incentive for charitable contributions.

50% of AGI is not what I was referring to. For people who make $50M, that’s an absurd cap in the context of a 80k cap.

So,where shall we stop? Do you also consider the mortgage interest deduction a tax break/ “subsidy” for the wealthy? It’s about the same thing, tbh. Both items are more likely associated with higher earners in relatively more expensive areas of the country. I pay about 22k in local property tax and slightly more than that in mortgage interest. Only one is limited, but arguably both would get me painted as some fat cat who doesn’t pay his fair share.

And previously it was a million. It’s never been something that allowed for people to lever up 5m primary residences and deduct it. The big thing is non-primary residences. I’d honestly prefer if they just said interest on any debt up to $1m total cap was deductible than this charade of providing incentives for people to have a second home. Of course this pisses off reps from big vacation home states.

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