SALT Break Would Erase Most of House’s Tax Hikes for Top 1%

  • Democrats still debating how to address SALT in House bill
  • Two-year suspension of cap on SALT deductions is one option
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High-earning taxpayers would face much smaller tax hikes -- or even cuts -- if Democrats decide to restore the federal deduction for state and local taxes in legislation that’s now moving through the House.

If the SALT deduction were fully reinstated, the top 1% of taxpayers -- those earning at least $401,601 -- would face a tax increase less than half as large as that if the current cap on the write-off were retained, according to data from the right-leaning Tax Foundation.