So SALTy: Taxpayers owe a collective $323B this year

10.9M people are losing out on state and local tax breaks for the first time

National /
Mar.March 02, 2019 12:00 PM

The tax overhaul limited the amount of state and local taxes, dubbed SALT, that taxpayers can write off to $10,000. (Credit: Pixabay)

Nearly 11 million people are losing out on state and local tax breaks due to the 2017 tax law overhaul — and now there’s a hefty price to pay.

The Treasury Inspector General for Tax Administration recently released a report that estimates the combined tax bill for the 10.9 million people on the hook for property taxes above the $10,000 cap totals $323 billion, according to Bloomberg.

The tax overhaul limited the amount of state and local taxes, dubbed SALT, that taxpayers can write off to $10,000. The change especially affects those in high-tax states like New York, New Jersey, Maryland and California. As a result, some wealthy residents are decamping for lower tax states, like Florida.

Representative Thomas Suozzi, a New York Democrat, estimated that about half of his constituents are getting squeezed by the SALT cap.

“They are just getting battered,” he said. “The cost of living is so high that they are just getting by.”

The report comes in the midst of tax season, as taxpayers are filing returns under the new law for the first time. Many taxpayers have found their refunds are smaller than expected as a result of the law change for SALT deductions.

New York Gov. Cuomo recently met with President Donald Trump to discuss revising the SALT cap, which the president said he was “open to talking about.” Senate Republicans have said they’re not willing to make revisions. [Bloomberg] — Meenal Vamburkar


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Home sales dipped in August after two months of increases
Home sales dipped in August after two months of increases
Home sales dipped in August after two months of increases
Here are the homes that billionaire Paulsons will spar over in divorce
Here are the homes that billionaire Paulsons will spar over in divorce
Here are the homes that billionaire Paulsons will spar over in divorce
Builders broke ground on more residential properties in August than had been predicted, but the number of single-family housing starts fell below expectations. (iStock)
August housing starts rose but single-family properties fell short
August housing starts rose but single-family properties fell short
Compass CEO Robert Reffkin and First Alliance Title co-founders Lon Welsh and Greg Parham (Compass, First Alliance)
Compass picks up another title company
Compass picks up another title company
Joshua Kushner and Karlie Kloss, with the Puck Building at 295 Lafayette Street (Photos via Getty, Ceros)
Joshua Kushner, Karlie Kloss selling Puck Penthouses condo
Joshua Kushner, Karlie Kloss selling Puck Penthouses condo
Blueground CEO Alex Chatzieleftheriou (Getty, LinkedIn via Chatzieleftheriou)
Blueground raises $140M in Series C equity, valuing startup at $750 million
Blueground raises $140M in Series C equity, valuing startup at $750 million
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...