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:

  1. 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.
  2. Eliminating SALT would generate an estimated $1.669 trillion in revenues over the next 10 years, according to the same report.
  3.  Getting rid of SALT would allow for a significant rate reduction — of up to 16 percent — for all taxpayers
  4. Eighty-eight percent of those using the SALT deduction make over $100,000, according to the Tax Foundation.
  5. The municipal bond interest deduction encourages state and local governments to run up debts that could lead to insolvency and unfairly subsidize wealthy investors.
  6. 125 state legislators 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.
  7. 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).
  8. 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)
  9. 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).
  10. Ronald Reagan argued in 1985 state and local tax deductions were “Truly taxation without representation.”

Your support of Heritage enables us to create sound conservative research that guides our nation’s critical policy decisions.

Do you believe SALT should be eliminated?

Comments (24)

Trudy Slater - November 3, 2017

Yes, SALT is not useful. The Heritage Plan is quite correct. Trump needs to adhere to his instincts not other’s “stinky” advice based on fear of shifting from past intransigence.

Richard Simpson - November 3, 2017

SALT needs to be eliminated.

Carl P - November 3, 2017

Eliminating SALT is long overdue. Also in order
to further help the middle class, do the following:
Increase the Std Deduction to $30,000
Increase the new 12% bracket high end from
$90,000 to $100,000
Increase the new 25% bracket high end from
$260,000 to $300,000
Make the tax benefits for individuals retroactive
to January 1, 2017 so they get the benefits
immediately.

William CHAMBERS - November 3, 2017

SALT should absolutely be eliminated . I hope this tax proposal is enacted early as possible this year. The next tax transformation must be the elimination of ALL Income Taxes via The FAIR TAX. This will lead the USA to enduring economic domination by returning power to the People and away from politicians!!!!!

Robert Dixon - November 3, 2017

The best thing Republicans can do to have the average middle class voter feel like the Republican Party is truly for them is to eliminate SALT! Long term this will pay dividends for Republicans!

Shirley Voss - November 3, 2017

Yes

Ronald Grabler - November 3, 2017

As a Heritage member, I was disappointed to see that the acronym for the Strategic Arms Limitation Treaty (SALT 1 and 2) have been taken to mean something entirely different. The SALT treaties were highly important to security of the world, something the present SALT program doesn’t do. I with your use could be undone.

Lloyd Smith - November 3, 2017

Absolutely eliminate SALT. Hopefully it will force states to rethink their taxation policies and reduce their spending. SALT only incentivizes the states to tax more and spend more.

ROBERT MCWAIN - November 3, 2017

Do it yesterday.

Pedro Villalba - November 3, 2017

I think 20 republicans live in the states impacted by eliminating Salt. It is a tough sell for them. Maybe eliminating the Carry over deduction for large investors (millions/billionaires) can offset allowing some level of income tax deduction or increasing the proposed cap of 10k for property tax.

Frank Watson - November 3, 2017

The proposal of increasing the Std ded. to 12,000 for singles and eliminating the personal exemption of 4050 only gives anextra 1500.in figuring your taxes. The new taxes does nothing to help those on S/S. Eliminate S/S income from being taxed. Increase 12% total income. Continue personal exemption

stephen palmer - November 4, 2017

Nixon might have been a republican but as we see later a crooked one. The agreement at the time may have been looked upon approvingly but did not and still does not live up to it’s idea and is a piece of history that needs to go away ASAP. The Government can’t seem to get it right..If something doesn’t work why keep funding it. Get rid of all those programs ,treaties and legislations that are no longer viable. You can’t bring a dead horse back to life so why keep trying to feed it. The democrat/communists would have a stroke ( I can dream ..can’t I ? ) if we started defunding their garbage and put trillions back into the PUBLIC coffers.

Richard Mondale - November 4, 2017

Yes SALT should be eliminated. This will require the rich to pay closer attention to where their money is being spent locally. They will not be so complacent about tax increases.

Ernest C Wilson - November 4, 2017

Most of us will not see lower rates, just more taxable income and therefore higher taxes. I see my taxes $8-10K per year higher. I lose State and local taxes, personal deductions and medical. I gain $12K in standard deduction. That’s about 30K in taxable income or $7.5k in higher taxes. That’s a 40% increase. I too am middle class. This is a major setback for me and I don’t think I am alone.

Jerry Metcalf - November 4, 2017

Yes, Stop SALT.

David - November 4, 2017

Yes, I definitely think that SALT needs to be eliminated. It is discriminatory. I do not, however, understand if it is eliminated, how it will affect state revenues. Each state can still allow the deduction if they so desire.
Increasing the standard deduction more than offsets any SALT advantage to all but the wealthy.

Brenda Strauch - November 4, 2017

Yes! It will hurt me at first because I live in California. But our entire state government is run by radicals who are redistributing what wealth the state has left (we’re broke) to illegal immigration and the “poor” who make more through all the welfare benefits per month than I made throughout most of my hardworking life. We as conservative have no voice. Maybe not getting taxpayers in other states to subsidize their madness will finally give us a chance to turn this state around and get rid of our Sanctuary State status and the State Supported Punishment via prosecution by the state attorney general for the terrible hate speech I am spewing here. Plus there is absolutely no sense of humor left on the left. What a drag!

jerry thomas - November 5, 2017

You make an assumption that everyone knows what SALT means. Please include a brief state of such short terms. By the comments, yes it needs to be eliminated.

I know there are other issues the “Gates and other wealthy” take advantage of>

Roy blasius - November 5, 2017

Yes, SALT needs to be eliminated.

Lee Shepard - November 5, 2017

Yes, SALT is not useful.

Brenda Bley - November 6, 2017

I agree – SALT should be eliminated.

John Reiersen - November 6, 2017

As a resident of NY I don’t agree SALT should be eliminated. It will result in an income tax increase for many New Yorkers especially those living Downstate. NY already provides a lot more money to Washington than what flows back unlike many other States. The elimination of SALT will make the disparity worse.
All taxpayers should get a decrease and its not fair that the rest of the Country get a decrease at the expense on NY and a few other States residents.
If you check, I think you will discover that the majority of Heritage members make over $100,000 a year. Also doesn’t the Heritage Foundation represent folks who live in NY, California or other high tax States? If not my membership should cease and I can use the savings to pay my increased taxes.
By eliminating SALT and increasing the Standard Deduction, about 95% of taxpayers will be taking the Standard deduction. So Heritage Foundation contributions will no longer be deductible to 95% of your members. I will be urging my Republican Congressman Lee Zeldin to vote NO on the so called tax reduction bill.

Roberta - November 9, 2017

Ernest C Wilson you hit the nail on the head. How anyone can justify eliminating SALT for the middle class tax payer is beyond me. We tend to forget the retired middle class tax payer carried the tax burden for government overspending and welfare programs for 30 plus years before retiring.

Alexander Thompson - November 10, 2017

I had no idea!!!

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