Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

SALT-Cap Proposal Is Floated for Two Years Off and Four Years On

EconomyOct 27, 2021 02:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Bloomberg. The U.S. Capitol in Washington, D.C. Photographer: Stefani Reynolds/Bloomberg 2/2

(Bloomberg) -- House Democrats are getting more creative in their ideas to squeeze the state and local tax deduction into President Joe Biden’s economic agenda as lawmakers face increasing pressure to cut billions of dollars from a social-spending bill.

Under current law, the SALT deduction’s $10,000 limit -- enacted in 2017 to help pay for Republican tax cuts -- is scheduled to be in place through the end of 2025, reverting to a full tax break in 2026.

Democrats had recently been contemplating suspending the $10,000 limit for two years, then reinstating the limit in 2024 and returning to a full deduction in 2026. The new idea under consideration is to instead reinstate the limit from 2024 to 2027, and return to a full deduction in 2028.

“We’re thinking about it. I can tell you that,” House Ways and Means Chairman Richard Neal told reporters late Monday.

Read QuickTake: All About SALT, the Tax Deduction That Divides U.S.

This would make the spending bill appear less costly because congressional scorekeepers would assume that the cap is in effect from 2024 to 2027. Democrats, however, plan to repeal the cap entirely before it’s reinstated -- though there is no guarantee they’ll be able to do that.

SALT has emerged as one of the key issues for a contingent of House Democrats, largely representing high-tax areas in New York, New Jersey and California. They have said that SALT, which was restricted in the 2017 Republican tax law, must be included in the Biden agenda to win their votes.

However, key lawmakers who have been advocating for the issue have yet to endorse the two-year delay idea.

“No SALT, no deal. I’m confident we are going to get something done,” Representative Tom Suozzi of New York said Tuesday, though he declined to comment on the two-year delay option.

A two-year outright repeal, which would cost roughly $180 billion, is getting less likely as Democrats make major cuts to trim a $3.5 trillion social spending package to nearly $2 trillion. Some lawmakers, including Representative Brendan Boyle of Pennsylvania, said he prefers lifting the cap to about $20,000 or $25,000 and giving married taxpayers a higher cap than single filers.

Representative Bill Pascrell, who met with Biden Monday in his home state of New Jersey, said he got to discuss several issues with the president. Pascrell said labor leaders present raised SALT as an important issue for people in high-tax areas.

“That fight is by no means over,” Pascrell said. “It’s an everyday subject and we continue to pursue it.”

©2021 Bloomberg L.P.

SALT-Cap Proposal Is Floated for Two Years Off and Four Years On
 

Related Articles

Top 5 Things to Watch in Markets in the Week Ahead
Top 5 Things to Watch in Markets in the Week Ahead By Investing.com - Nov 28, 2021

By Noreen Burke Investing.com -- COVID-19 is back on top of the agenda for investors amid fears that the new Omicron variant could stall the global economic recovery from the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email