{"id":20314,"date":"2025-09-05T22:56:53","date_gmt":"2025-09-05T22:56:53","guid":{"rendered":"https:\/\/finderica.com\/?p=20314"},"modified":"2025-09-05T22:56:53","modified_gmt":"2025-09-05T22:56:53","slug":"higher-salt-deduction-relieves-homeowners-adds-to-national-debt","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=20314","title":{"rendered":"Higher SALT deduction relieves homeowners, adds to national debt"},"content":{"rendered":"
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President Donald Trump’s “big beautiful bill” raised the state and local tax deduction, known as SALT, to $40,000 for 2025. The change comes less than a decade after a cap was placed on this tax break<\/a> for the first time in its history.<\/p>\n

Taxpayers who itemize\u00a0tax breaks can\u00a0claim the SALT deduction, which includes state and local income taxes and property taxes. Trump’s\u00a02017 legislation\u00a0capped SALT at $10,000. Before 2018, the deduction was unlimited \u2014 but curbed by the\u00a0alternative minimum tax\u00a0for some wealthier households.<\/p>\n

“This was in effect for over 100 years prior to the 2017 passage of the Tax Cuts and Jobs Act,” said Rep. Mike Lawler, R-N.Y., who led the push on Capitol Hill for the higher cap.\u00a0<\/p>\n

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Congress introduced an unlimited state and local tax deduction in 1913. Lawmakers’ goal: cut down on what some consider double taxation.<\/p>\n

But when Republicans needed ways to pay for other tax breaks in the 2017 bill, they homed in on capping the state and local deductions, arguing they primarily benefited wealthier Americans in high cost-of-living areas.<\/p>\n<\/div>\n

<\/a>Who benefits from a higher SALT cap<\/h2>\n
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Households making $1 million or more would receive half of the benefit if the SALT cap were repealed, according to a 2021 report from the Tax Policy Center<\/a>.<\/p>\n

But data shows less-wealthy families stand to save from the higher cap, too, especially those in high cost-of-living areas outside major cities.<\/p>\n<\/div>\n

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