House Democrats plan to raise state and local tax caps to $80,000 through 2030 – News Couple

House Democrats plan to raise state and local tax caps to $80,000 through 2030

Rep. Josh Gotheimer (D-NJ) (center) and Representative Tom Reed (R-NY) (third right), co-chairs of the bipartisan problem-solving caucus, hold a press conference with fellow congressmen to highlight the need for COVID-relief legislation 19 bipartisan, bicameral outside the US Capitol on December 3, 2020 in Washington, DC.

Chip somophila | Getty Images

House Democrats late Thursday revised their spending package by changing the limits on state and local taxes, known as SALT.

The new plan will increase the cap to $80,000 from $10,000 annually through 2030, and the $10,000 cap will return in 2031, according to the amendment — a $7,500 increase and a one-year decrease from Wednesday’s proposal.

Rep. Josh Gottheimer, DN.J. Tom Suozzi, DN.Y. ; and Mickey Sherrill, DNJ, in a joint statement.

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“This agreement to address the state and local tax deduction caps will effectively remove the undue burden of nearly all families in our counties who have been subjected to an unfair tax doubling over the past four years,” they said.

However, opponents had already halted Wednesday’s plan to limit $72,500, saying the write-off could primarily benefit high-income earners.

Only 1.6% of middle-income families earning between $54,000 and $96,000 will receive a benefit by increasing the cap to $72,500 in 2021, according to a Tax Policy Center analysis, with an average tax cut of $20.

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