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 (55)

Don Colaizzi - November 3, 2017

The three of the six stated listed are in deep financial difficulties and the other three aren’t far behind. Their poor financial management is not helped by SALT. Revolving SALT is an excellent idea and long overdue.

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.

Bill McCarty - November 3, 2017

California will succeed.

Anthony Brajkovich - November 3, 2017

Tell me exactly how much my federal income tax rate will be reduced from the present rate as the trade-off for losing SALT deductions. If losing the SALT deductions results in me paying higher income taxes then I would definitely not be in favor of eliminating SALT.

Paul D’Aigle - November 3, 2017

Yes. Absolutely! Didn’t realize until this issue came out how disruptive this is for the vast majority of tax payers yet most of us didn’t even realize it until now. Glad to hear people on our side who understand taxes speaking up. Thanks to President Trump too!

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

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!!!!!

Janet Bondelid - November 3, 2017

I like Carl’s suggestions about the standard deduction increase and retroactive tax benefits.

Glenn Gage - November 3, 2017

State and Local income taxes should not be deductible. This is a subsidy to high tax states by low tax states.

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!

Hubert Summers - November 3, 2017


Marianne Haydon - November 3, 2017

Great analysis. I agree that SALT is not useful or fair. And, I live in California!

Shirley Voss - November 3, 2017


Elliott Nelson - November 3, 2017

SALT discriminates against people living in low state tax States ours is Nevada..
We must also get rid of the Required Minimum Distribution which discriminates against Senior Citizens!

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.

Jim R - November 3, 2017

I do think SALT should evaporate. However, you cannot impose a tax on a tax.

John - November 3, 2017

Yes, and this will cost me lots of money because I live in CA. U.S. Taxpayers in the rest of the country should not be subsidizing the government largess of CA, NY, IL, etc. MAYBE this will wake up those states, which will clearly need federal bailouts eventually if they don’t get their fiscal houses in order. If banks were too big to fail, what’s going to happen when CA, IL and NY fail on their accumulated debts and pension costs?

Laura Blomquist - November 3, 2017

As a single 87 year old female grossing less than $100,000 and netting less than $70,000, I see my tax bills going up not down. My Maryland taxes, my medical insurance and doctors’ bill as well as my food costs keep rising.

I see no relief for me. I worked till I was 75 years old so I could live with dignity – not in luxury – in my old age, I did without many things as well as travel to build an IRA. Now I pay more for Medicare than others and had my Social Security reduced by almost 2/3rds because I receive a public pension. I could go on but I am so tired of picking up the bill for all those indolent folks who retired early, never earned a living….

All I see is higher taxes for me and no benefits….

Randall Reeves - November 3, 2017

Not everyone who receives the “SALT” deduction is a millionaire as this article alleges. My wife and I make about $120k combined annually, which in California affords us a solid middle class living, not in the least bit extravagant. We regularly vote against the ever-increasing taxes and fees and bond issues that the money-gobbling politicians in Sacramento keep increasing, but we get outvoted. Losing the SALT deduction will hurt us and many middle class families like us. If your response to this is “well, move!” all I can say is this is not an option for us, just as it is not an option for most average people.

Michael Cartee - November 3, 2017

Like my doctor said, too much SALT is bad for your health. The same is also true for national tax policy.

I believe a national public awareness campaign is needed to detail exactly how high-tax states use their tax codes to stiff the rest of this union with the “check”. Perhaps it’s time for a little “tax policy shaming”!

Banks aren’t the only entities that can get too big to fail. Maybe the government should crack-down on certain “engorged” states as well.

So, bring on the talking heads and “bar-charts”!

Lorette H. Palfrey - November 3, 2017

SALT needs to be eliminated. It is unfair for those Americans living in states that do not have state taxes to pay more in federal taxes. I hope President Trump will look to the Heritage Plan for guidance when making his decision on Tax Reform.

Jim Kracht - November 3, 2017

No. Plainly put: SALT is fair because it eliminates double-taxation. Removing SALT forces taxpayers to pay taxes on money that has already been paid out (in state taxes) and is no longer theirs. Those in high-tax states don’t enjoy paying exorbitant state taxes, they are already being slammed — and this move would kick them while they’re down.

Arthur - November 3, 2017

Yes, SALT should be eliminated!

ROBERT MCWAIN - November 3, 2017

Do it yesterday.

Karen Romeo - November 3, 2017

Yes. Why should we, from the lower taxed states, basically help support those whose states have astronomically high state and local taxes. They should support tax reductions in their states, most of which are blue states.

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.

Gretchen Wilson - November 4, 2017

SALT needs to be eliminated. People need to take a hard look at where local and state taxes are spent. SALT has allowed some people to look at local taxes as just a write off instead of asking for accountability from their local and state officials.

Elliot Timms - November 4, 2017

I agree with the Heritage Foundation that SALT is antiquated; doesn’t benefit the middle class and undermines true tax reform. Eliminate SALT!

Charles A Fiedler - November 4, 2017

SALT causes those in low tax states to subsidize those in high tax states.

Peter Welles - November 4, 2017

Yes, absolutely get rid of it!

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.

Frances Arnone - November 4, 2017

Definitely agree SALT works against the middle income families by subsidizing those high tax states who don’t care what their tax rate is because they can deduct their taxes; thus those states spend money like water.
Would like this tax plan to be retroactive to Jan. 2017.

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.

kenneth rowland - November 4, 2017

do away with it now.

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!

Timothy Parkinson - November 4, 2017

FYI. To whom it may concern,just a few minutes ago I tried to watch the weekly round up on the daily signal. Viacom blocked me out due to copyright reasons…?????? I’ve always been able to watch it previously. What is going on? Sorry this is off subject but someone should know,thank you

James Hargett - November 5, 2017

Chipping away at the burgeoning debt via ‘Desalinizing’ SALT by the GOP is why I went to Cleveland, Oh. last year for the convention and why I was born Republican. The seemingly small chinks off the spend thrifty monolithic behemoth Liberal legacy demonstrates the Beltway GOP IS growing some BBs for our progeny! Think CANON balls and dream! 🙂

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>

Robert L. Tedoldi - November 5, 2017

Eliminate SALT

Roy blasius - November 5, 2017

Yes, SALT needs to be eliminated.

Lee Shepard - November 5, 2017

Yes, SALT is not useful.

Sue W. Galey - November 5, 2017

I certainly DO believe, truly, the SALT should be done away with – permanently. What a disgrace. And the ones who passed this ‘pig’ of bill were looking after the “good of America as a whole?” HA!
This would be a grand step at ‘cleaning the swamp”!

Robert Gingery - November 6, 2017

Probably eliminating the deduction is correct but the result will probably be that I pay MORE TAXES! It is very discouraging to work your rear end off and pay 60% in taxes all things considered. I feel I deserve a tax break as well. I have no vote in CA regarding anything done our crazy liberal-laden government. Repubs are powerless.

Mark D. - November 6, 2017

I live in high cost Connecticut. Loosing deductions for investment expense, SALT, and medical will cost me over 8k in additional taxes. This plan is a huge tax increase for individuals making over 100k in wages and that is not rich here. There will be little effect to the consumer part of the GDP which has been carrying the country the past 24 years. This will be the largest personal tax increase in US History. Try again.

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!!!

Sharon - November 29, 2017


Leave a Reply

Your email address will not be published. Required fields are marked *