Plan to repeal SALT would benefit many
On our federal income tax returns, U.S. taxpayers may take a deduction for certain taxes paid to state and local governments. This deduction is known as SALT. Republicans in the federal government have proposed a repeal of the SALT deduction.
In his recent Another Voice column, Morris Pearl criticized that proposal. He lumped a possible SALT repeal together with a broader Republican tax plan that, in his view, would “give America’s wealthiest citizens a tax cut.” We are better served, however, analyzing SALT on its own merits.
SALT is most heavily utilized by the wealthiest taxpayers. The Tax Foundation has found that over 90 percent of the value of SALT deductions goes to families making more than $100,000 per year. SALT is not available to families that take the standard deduction, and many of those families earn low incomes.
A repeal of SALT would likely generate over $1 trillion for the federal government over the next decade. This revenue could be used to reduce the national debt, rebuild our infrastructure, fund our schools, and more.
I tend to disagree with today’s Republican Party on many issues. Even so, I recognize the virtues of its proposal to repeal SALT.
Steven B. Salcedo