How the State and Local Tax Deduction Influences State Tax Policy
The state and local tax deduction isn’t just a costly federal subsidy. It also skews state and local tax policy decisions.
2 min read
All Related Articles
Examining Different Assumptions About the Republican Framework’s Impact on Lower Middle-Income Households
The broad conclusion here is that, in drafting the Republican Framework, lawmakers have left themselves with at least one significant lever for delivering middle class tax relief: the child tax credit.
7 min read
What Could a Partial Repeal of the State and Local Tax Deduction Look Like?
A cap on the state and local deduction would limit tax increases for high-income taxpayers but also raise about one-quarter the revenue as full repeal.
2 min read
What Would the “Big Six” Framework Mean for Lower-Middle Income Households?
Based on the details we have, the Big Six tax plan would lower taxes on the bottom 80% of taxpayers, and raise the tax burden on the top 20% of taxpayers.
7 min read
Eliminating the SALT Deduction Under the “Big Six” Tax Plan
The state and local tax deduction favors high-income individuals in high-tax states. Six states—California, New York, New Jersey, Illinois, Texas, and Pennsylvania—claim more than half of the value of the deduction.
2 min read
Details of the “Big Six” Tax Framework
Republican leadership in the House, Senate, and White House released a framework for a tax proposal that would lower taxes on businesses and individuals and simplify a number of aspects of the federal tax code. Here are the details we know right now.
3 min read
Is the State and Local Tax Deduction in Place to Protect Against Double Taxation?
Repealing the state and local tax deduction will be an important part of pro-growth tax reform. Eliminating the deduction would free up $1.8 trillion to use for lowering rates across the board. Special interest groups will want you to think this deduction protects you against double taxation. Don’t fall for it.
2 min read
Corporate and Individual Tax Expenditures
The elimination of tax expenditures is a popular way to pay for tax reform, but not all tax expenditures are equally worthy of elimination. It is important to ask, for each expenditure, whether it serves a reasonable purpose and whether it accomplishes that purpose in a reasonable way.
23 min read
