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Pass the SALT

This past week saw yet another attempt to increase the State and Local Tax deduction (SALT) through the US Congress, and yet another failure, as first the Republicans, and now the Democrats, blocked the measure.

 

Under former President Trump, the US Congress "capped" the SALT deduction at $10,000.  That was supposed to be part of a "tax cut," but instead walloped middle and upper middle class suburban homeowners who pay high property taxes.

 

If you pay $22,000 in property taxes, you can now only deduct the first $10,000 - meaning $12,000 in property taxes are non-deductible - and you are paying an extra $4,000 in taxes to the federal government.  Some "tax cut."

 

In the past, suburban Democrats - including newly-returned Democratic Congressman Tom Suozzi - led the effort to "lift the cap" for suburban homeowners, and rural Republicans blocked them.

 

Last week, the positions reversed, as suburban Republicans - led by Long Island Congressmen Nick LaLota, Andrew Garbarino and Anthony D'Esposito - pushed to double the SALT deduction, only to be blocked by urban Democrats like Hakeem Jeffries, who represent apartment renters, not homeowners.

 

Every single Democrat - including many suburban Democrats - voted "No" - and were joined by 18 Republicans who represent rural districts.  The vote failed 195 to 225.

 

The dysfunction of the US Congress is on full display with these idiotic partisan stunts. Each party has opposed SALT reform - because the other wanted it. Suburban homeowners be damned.

 

The good news is that the Trump "tax cuts" expire in December, 2025, when the full SALT deduction will return. 

 

Unless the geniuses in the US Congress again get in the way.

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