" As states and localities react to a SALT deduction repeal by cutting services, raising regressive taxes, or both, low- and moderate-income Americans likely would suffer. That’s a poor trade for most Americans, given that the federal revenues raised would overwhelmingly go for tax cuts that disproportionately benefit the highest-income Americans. It would be an especially adverse trade when one considers that the pending Trump, House, and Senate budget plans would also heavily shift costs to states and localities through a wide array of deep budget cuts, thereby adding significantly to pressures on state and local budgets — even as the GOP tax plan would make it harder for states to maintain their current revenues."
' “Deductibility of state and local taxes,” the National Governors Association has stated, “has contributed to the stability of state revenues that are essential for providing public services.”[8] Similarly, in analyzing the GOP tax plan, the Tax Policy Center warned, “Eliminating the deduction … could affect the mix of revenue used by state and local governments and could lead to reductions in spending for programs and services.”[9] Even SALT deduction critics agree that eliminating it would reduce state and local services, although some see that as a benefit. “The state and local tax deduction …” the Heritage Foundation writes, “supports detrimental economic policies: high levels of taxation and inefficient and wasteful government spending.”'
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