House Approves Spending Bill with $80,00 SALT Cap from 2021 to 2030
Members in the House approved their $1.75 trillion spending package on Friday, which temporarily increased the limit on the federal deductions for State And Local Taxes, known as SALT.
From 2021 to 2030, the limit would be raised to $80,000 and then reduced back to $10,000 in 2031.
The present $10,000 limit would expire after 2025 if no changes are made.
“Since it was implemented in the 2017 Republican tax hike bill, the cap has unfairly double-taxed families across the country and worked to defund our states’ critical priorities,” Reps. Bill Pascrell, Jr., D-N.J.; Tom Suozzi, D-N.Y.; Josh Gottheimer, D-N.J.; and Mikie Sherrill, D-N.J. said in a joint statement.
“The bill we just passed in the House would effectively eliminate the impact of the SALT cap for virtually every family we represent, putting money back in the pockets of hardworking, middle-class families in New Jersey and New York,” they stated.
The measure, however, is criticized by opponents as a tax write-off for the wealthy.
“The current House version of SALT gives millionaires thousands in cash, while people who make less than about $100,000 per year get less than $20 on average,” Rep. Jared Golden, who voted against the bill wrote on Twitter.
There is the possibility that the provision could change in the Senate, where top Democratic lawmakers are exploring other means of reducing SALT deductions.
“It’s not about tax cuts for wealthy people,” Nancy Pelosi said on Monday in her weekly press conference. “It’s about services for the American people.”