A Tax Cut for the Wealthy That Democrats Like

The Week: “The SALT deduction is a good window into the politics of Democratic moderates in blue states. The SALT cap stipulates that tax filers can now only deduct $10,000 in state and local tax payments from their income for the purposes of federal tax liability.”

“The deduction is effectively a roundabout subsidy of high-tax blue states (because it lessens the burden of paying their often higher taxes), and capping it was a gleeful Republican finger into the eye of places like Maryland, New York, and California. But the benefits of removing the cap would be extraordinarily regressive.”