SALT Fight Headed for Reconciliation Showdown

Bloomberg: “The budget blueprint for that package, released by Senate Democrats on Monday, explicitly provided for making the SALT deduction more generous.”

“They argue it prompts wealthier people to move to low-tax places like Florida and Texas, which hurts their state’s ability to fund robust social services, an issue that should be a concern to both moderates and progressives.”

“Liberals counter that the deduction aids higher-income taxpayers, and shouldn’t be a priority given greater need to enhance federal support for lower-income families in the social-spending focused bill. It would cost hundreds of billions of dollars to restore the write-off to pre-Trump levels, with more than half of those benefits flowing to households earning at least $1 million.”