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Tags: trump | tax cuts | state | local | salt | deduction | biden

White House Downplays Hopes for SALT Cap Hike

By    |   Thursday, 13 June 2024 01:05 PM EDT

The Biden administration warned people not get their hopes up for an increase in state and local tax (SALT) deductions if President Joe Biden wins reelection, Bloomberg reported.

Many of the 2017 income tax cuts signed into law by then-President Donald Trump are set to expire after 2025. High-tax area Americans in New York and California are among people seeking a big expansion to the $10,000 limit on SALT deductions.

Biden's top economic adviser downplayed that possibility.

"The president has made it very clear he just doesn't believe that the wealthiest Americans need another tax break. So I think that principle will guide his approach, or his team's, approach to the SALT cap," White House National Economic Council Director Lael Brainard said on a call with reporters, Bloomberg reported Thursday.

Brainard said a second Biden administration would concentrate on increasing taxes for corporations and billionaires.

"Tax fairness resonates very strongly with people," Brainard said. "They don't understand why somebody who has hundreds of millions of dollars in income pays a tiny share of their actual income relative to a school teacher or a firefighter."

If all the 2017 tax cuts expire, the majority of U.S. households would see their payments to the IRS increase.

However, if all the tax cuts are extended, as additional $4.6 trillion including the cost of debt service would be added to the national debt over the next decade, according to the Congressional Budget Office.

Republicans are preparing to fast-track the extension of the Trump tax cuts through the reconciliation process if they win control of the Congress in November, lawmakers told The Hill. Reconciliation allows lawmakers to pass major tax and spending bills with a simple majority.

Trump allies, though, have urged him to lower the SALT deduction as a way to offset other tax cuts, Bloomberg reported.

Besides the $10,000 SALT cap, reductions to individual tax rates, a tax break for privately owned business and a reduction in inheritance taxes also are set to expire.

Biden has said that he would allow the income tax cuts for the rich to expire while protecting those who earn less than $400,000 annually from any tax hikes, CNN reported.

The president also has proposed raising the corporate tax rate from 21% to 28%.

Charlie McCarthy

Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.

© 2024 Newsmax. All rights reserved.


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The Biden administration is warning people not get their hopes up for an increase in state and local tax (SALT) deductions if President Joe Biden wins reelection, Bloomberg reported.
trump, tax cuts, state, local, salt, deduction, biden
378
2024-05-13
Thursday, 13 June 2024 01:05 PM
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