The U.S. House tax-writing committee released a draft bill on May 12 that increases the state and local tax (SALT) cap. Currently, there’s a $10,000 limit on the SALT deduction. The proposed bill raises it to $30,000 for taxpayers with incomes of $400,000 or less. Also included in the draft bill: increasing the Child Tax Credit from $2,000 to $2,500 and abolishing tax on tips, overtime, and certain car loan interest. The bill doesn’t eliminate tax on Social Security benefits, as promised by President Trump, but there’s an “enhanced deduction for seniors.” The House Ways and Means Committee will continue marking up the bill and it may change significantly before it’s finalized.
Our Blog 