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 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.
- 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.”
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?