Digging in on SALT

The current wave of protests have surfaced long simmering racial inequalities in a pronounced way, making it harder for Americans to ignore. On Thursday, POLITICO Live will convene scholars, activists and public officials for a virtual town hall focused on education inequality and the policies and measures needed to overcome disparities that persist in how Black and minority students are educated.

Among them: Deductions for charitable giving have a more direct motivation than SALT — you know, to spur more donations. Plus, Gardner added, there’s the issue that Washington finds it easier to deliver benefits through the tax code than as direct spending, which can help keep alive those kinds of deductions.

Some experts will say that a full SALT deduction, at its core, theoretically makes it easier for states and localities to hike taxes on the rich but that doesn’t always work out in reality. For instance, Gardner pointed out that Democratic Gov. Phil Murphy of New Jersey just got the legislature there to agree to a millionaires’ tax, something he’s been seeking for the better part of three years.

And Howard Gleckman of the Urban-Brookings Tax Policy Center noted that revenues in states like New York and California were doing just fine after the Tax Cuts and Jobs Act before the pandemic hit. “It is hard to draw a straight line between the SALT cap and cuts in revenue to support services for low-income people,” Gleckman said. “Nothing very exciting happened in 2018 and 2019.

At the same time, Schumer and Pelosi have made it quite clear that they’re serious about rolling back the SALT cap if Democrats take full control in November. A Democratic bill in the House last year would have offset a two-year reprieve from the $10,000 limits with tax increases at the top end, which would also, however, take away those offsets for more progressive policies.

And the poor trumpers are still waiting some effects, saying 'when I will see difference in my paycheck?'........😂

SALT was a way for big cities and states to avoid paying federal taxes by making their state and local taxes extremely high. Limiting SALT deductions on federal income taxes actually forces these states to pay the same rates as the rest of the country.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

I Miss Rude Awards Show Audience Reaction ShotsWhen the 2020 Emmy Awards began on Sunday night, I felt that I had briefly time traveled. Jimmy Kimmel was giving a monologue on-screen to robust laughs, the camera cutting to a full house of well-dressed and un-masked celebrities clapping along. It all seemed eerily normal until Kimmel noticed himself in the audience shot, while he was also talking on stage. “Of course we don’t have an audience,” Kimmel said, revealing that the awards show had just been using old stock footage and applause to give the spooky illusion of one. In reality the theater was stocked with cardboard cutouts of nominees, fake stand-ins who wouldn’t be able to deliver the one thing that makes tedious awards shows any good, the secret glue that holds them together: rude audience reaction shots.
Source: Jezebel - 🏆 153. / 63 Read more »