Democrats consider repealing SALT limit for five years in spending bill

Democrats are considering including in their social spending package a five-year waiver of the state and local tax deduction (SALT) limit, sources told The Hill.

Lawmakers are considering repealing the $ 10,000 limit through 2025 and offsetting the cost of doing so by imposing the limit in subsequent years, according to a Democratic aide and a Democratic lawmaker familiar with the discussions.

Repeal of the SALT deduction limit is a top priority for several House Democrats in high-tax states like New York and New Jersey. Leading proponents of the cap revocation praised the development.

“Today’s news is encouraging that a SALT limit waiver be included in the final reconciliation package,” the representatives said. Josh gottheimerJoshua (Josh) Gottheimer Democrats call for the IRS bank reporting proposal to be removed from the Podemos spending bill and we will meet the climate test in the Build Back Better Act 5 sticking points holding back the spending package of the Democrats MORE (DN.J.), Tom Suozzi (DN.Y.) and Mikie sherrillRebecca (Mikie) Michelle Sherrill Katie Hill Launches Effort to Protect the Democratic Majority in the House of Representatives House Panel Approves Momentum B for the Democratic Defense Budget Introduces Bill to Allow Only Members of the Camera act as Spokesperson MORE (DN.J.) said in a statement.

“We will continue to work with House and Senate leaders to ensure that the SALT deduction limit is repealed. No SAL, no treatment. Without SAL, without dice ”, added the legislators.

An agreement on the SALT deduction issue has not yet been finalized.

Chairman of the House Ways and Means Committee Richard NealRichard Edmund Neal Democrats seek adjustments to .75T framework White House framework includes tax increases, excludes multi-million dollar tax Trump’s lawyers ask judge to stop IRS from turning over their tax returns to congressional panel MORE (D-Mass.) He told reporters Tuesday that discussions about the SALT deduction limit are ongoing. He said the details of a deal are largely up to the Senate Majority Leader. Charles schumerChuck Schumer Democrats Face Wrath From Women Over Loss Of Paid Leave Ocasio-Cortez Presses Biden On Student Debt: ‘You Don’t Need Manchin’s Permission For Those’ 535 ‘Presidents’ With Veto Power: Why The budget agreement remains elusive MORE (DN.Y.).

Changes to the SALT deduction limit are among the pending issues Democrats are grappling with as they work to finalize their social spending package.

The issue was not included in the framework that the White House released last week. The problem is challenging for Democrats, with some lawmakers in high-tax states seeing the repeal of the cap as a must and other lawmakers expressing concern about the benefits of the repeal for high-income taxpayers.

The SALT deduction cap was created by the Republicans’ Tax Cuts Act of 2017 as a way to help pay for other tax provisions to that extent. It is currently scheduled to expire in late 2025, along with other changes to the tax code for individuals.

Supporters of the cap argue that it helps prevent the federal tax code from subsidizing higher state taxes. But opponents of the cap argue that it hurts residents of high-tax states and makes it difficult for those states to provide robust public services.

Its. Bernie sandersBernie Sanders Sanders Responds to Manchin Spending Concerns Manchin frustrates Democrats with the latest outburst of the Democratic race to reach an agreement on the price of prescription drugs MORE (I-Vt.) He called the idea of ​​repealing the limit “more than unacceptable.”

“At a time of massive income and wealth inequality, the last thing we should do is give more tax breaks to the very rich. Democrats campaigned and won on an agenda that demands that the very rich finally pay their fair share, not a fair share. that gives them more tax breaks, “he added.

Scott Wong and Al Weaver contributed. Updated at 5:24 pm



Reference-thehill.com

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