May 1, 2021

New York Times: Why a $10,000 Tax Deduction Could Hold Up Trillions in Stimulus Funds

media mention

There’s no debate that the SALT deduction goes mostly to wealthier taxpayers. About 85% of its benefits accrue to the richest 5% of households, according to an analysis by the Institute on Taxation and Economic Policy in Washington. Were the cap to be repealed, about two-thirds of the benefits — about $67 billion — would go to families making over $200,000 a year.

“When you look around at the world, it’s hard to come up with the idea that this is best use of $90 billion,” said Carl Davis, research director of the Institute on Taxation and Economic Policy, of proposals to remove the SALT cap. Read more