When the White House needs a trusted source of information, they turn to Heritage.
On Monday, The White House sent an e-mail listing the top ten reasons SALT needs to be eliminated. SALT is a state and local tax deduction that disproportionally benefits the wealthy, increases state and local debt, and gives no benefit to more then 70% of Americans.
Five of those reasons, bolded below, cited Heritage research:
- The SALT deduction disproportionately benefits the wealthiest 1 percent — more than 70 percent of Americans receive no benefit from the deduction, according to a report by the Heritage Foundation.
- Eliminating SALT would generate an estimated $1.669 trillion in revenues over the next 10 years, according to the same report.
- Getting rid of SALT would allow for a significant rate reduction — of up to 16 percent — for all taxpayers
- Eighty-eight percent of those using the SALT deduction make over $100,000, according to the Tax Foundation.
- The municipal bond interest deduction encourages state and local governments to run up debts that could lead to insolvency and unfairly subsidize wealthy investors.
- 125 state legislatures from 35 states signed an ALEC letter to repeal SALT because abolishing it would force residents to take a much harder look at their state and local tax rates – especially in the highest taxed states.
- Millionaires in New York and California get huge tax breaks from the state and local tax deduction. On average, millionaires in these two high-tax states deduct more than $450,000 in state and local taxes, leading to a federal tax break of more than $180,000 (Source:Heritage Foundation).
- Similarly-situated millionaires living in low-tax states such as Texas and Florida deduct only about $75,000 in state and local taxes. As a result, millionaires living in Texas and Florida pay about $150,000 more in federal income taxes than those with identical incomes who live in California or New York. (Source: Heritage Foundation)
- Together, California and New York receive nearly one-third of the deduction’s total value nationwide. Six states – California, New York, New Jersey, Illinois, Texas, and Pennsylvania – claim more than half the value of the deduction (Source: Tax Foundation).
- Ronald Reagan argued in 1985 state and local tax deductions were “Truly taxation without representation.”
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Do you believe SALT should be eliminated?