Forbes: How An $80,000 SALT Cap Stacks Up Against A Full Deduction For Those Making $400,000 Or Less

Congress seems to be considering two ways to address the Tax Cut and Job Act’s $10,000 cap on the state and local tax (SALT) deduction. The House version of President Biden’s Build Back Better (BBB) bill would raise the cap to $80,000. An alternative plan, first proposed by the Institute on Taxation and Economic Policy (ITEP), would eliminate the contentious cap entirely for those making $400,000 or less and then gradually restore the $10,000 deduction limit. Senators Bernie Sanders (I-VT) and Bob Menendez (D-NJ) are developing a proposal similar to that idea, though final details may differ. Read more