The Tax Cuts and Jobs Act capped the state and local tax (SALT) deduction at $10,000 for tax years 2018 to 2025. The result has been a tax increase for many taxpayers. (Previously, there was no cap on the SALT deduction.) Efforts to eliminate the cap are gaining support from a growing number of lawmakers. A group of U.S. House members dubbed the “SALT Caucus” recently introduced the Securing Access to Lower Taxes by ensuring Deductibility Act. The latest measure has garnered bipartisan support with 45 House members signing on as cosponsors. The House has passed legislation to restore the SALT deduction four times since 2019, but Senate leadership has never agreed to take it up. Stay tuned.
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