Republicans from wealthy congressional districts in high-tax states threatened to kill President Donald Trump’s “one big, beautiful bill” if they could not tack on a massive tax break for their wealthy constituents. They got their way in the bill that passed in the House on Thursday morning.
The matter in question is the deductibility of state and local taxes — the SALT deduction.
Currently, taxpayers who itemize their deductions on their federal returns can write off their local property taxes, as well as their state and local income taxes (and in some cases sales taxes), but only up to $10,000. The $10,000 cap, for single and joint filers, was set by the Tax Cuts and Jobs Act.
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As Congress takes up the “one big, beautiful bill” to
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