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
Houston House at 298 East 2nd Street and Matt Lee (Houston House, LinkedIn)
Developer Matt Lee to auction off East Village condo
Developer Matt Lee to auction off East Village condo
Michael Stern and Walker Tower unit 15B (JDS, Google Maps)
Michael Stern’s Walker Tower pad sells for 24% under ask
Michael Stern’s Walker Tower pad sells for 24% under ask
Homebuilding is largely responsible for the increase in construction spending. (Getty / Photo Illustration for The Real Deal)
Construction spending hits new record in January
Construction spending hits new record in January
Equitable CEO Mark Pearson and Fisher Brothers’ CEO Ken Fisher with 1345 Avenue of the Americas (Google Maps)
Equitable Life Insurance inks 130K sf lease for new office
Equitable Life Insurance inks 130K sf lease for new office
A Columbus Circle apartment once owned by Tom Brady and Gisele Bundchen  went into contract last week, helping the Manhattan luxury home market finish February on a high note. 551 West 21st Street on the right. (Photos via Compass, Getty, Foster and Partners)
Manhattan luxury market has best month in six years
Manhattan luxury market has best month in six years
(iStock/Illustration by Kevin Rebong for The Real Deal)
These are real estate executives’ worst worries for 2021
These are real estate executives’ worst worries for 2021
arrow_forward_ios

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

Loading...