As the lawmakers in debate presidents Donald TrumpTax cuts, a key reduction can Becomes a point of execution to 2025 Tax negotiationsexperts say the policy.
Implemented by Tax cuts and job workor TCJA, in 2017, there is now a $ 10,000 limit To division of federal state and local tax, known as salt. Residents with tax breaks do not reduce over $ 10,000 in levies paid by state and local government, including taxes and taxes.
That can change taxpayers’ tax negotiations from high-tax states such as California, New Jersey and New York.
Since 2018, salt salt is a Issue of the hot button Among some legislators from high tax states. Before TCJA, reducing salt is unlimited, but the so-called Alternate minimum tax reduced benefit for some higher income.
TCJA Salt’s provision expires after 2025 without moving from Congress.
Although Trump implements $ 10,000 salt cap in 2017, he His position is returned In the last year of ancient passage, promise to “get salt” when picked too. He changed calls for reform since sworn in office.
“I want to see something that happened to salt,” said Trump a Interact with Fox news on Sunday.
However, it is unclear how to change later change with computing tax priorities and a Limited budget.
“Salt salt is a primary revenue raiser,” says Garrett Watson, director of analyzing the Tax Foundation policy. “That’s the balance work.”
Trillion dollars in tax breaks made by TCJA scheduled to expire after 2025, including Lower tax bracketsa large Child Tax Credit and a 20% reduction for businesses, and so on.
Giving tax and tax provisions reduces revenue of $ 3.9 trillion over the next decade, according to the committee for a responsible federal budget.
A specmorm of salt reform, referring to Lift salt over $ 20,000 For couples to file equal, want In addition to revenue revenue by $ 170 billion, organizational estimates.
Other plans call for a higher depth of salt reduction or raising capacity for taxpayers under a revenue threshold.
The budget is ‘slightly’ for the tax agenda
With the control of two Congress rooms, Republicans plan to use a process known to “reconciliation” to minimize Trump’s tax tax. Now, the republicans ‘house’ Budget Blueprint $ 4.5 trillion in tax cuts up to 2034, even if it can be changed in the Senate negotiations.
That is a “almost indiscriminate
“If there is a great tax agreement this year, it seems to be sure that salt can be part of the discussion,” he said.
