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Donald Trump has been rolling out a series of tax cut promises, from ending taxes on tips to eliminating taxes on overtime pay.
His latest is tax cut is a burden he helped create for residents of high-tax states. It’s called the SALT deduction, which is short for state and local taxes. The 2017 tax law he signed capped the amount of local and state taxes that people could claim on their federal return at $10,000. It hit residents hard in high-tax states like New York and California.
Now in his attempt to return to the White House, Trump is seemingly reversing course.
He posted on his Truth Social account that “K will turn it around, get SALT back, lower your Taxes, and so much more.”
Trump made the statement ahead of a rally on Long Island. That area of New York is one of the hardest hit by the lost deduction under the Republican tax plan.
The SALT deduction has been fought by Democratic and Republican lawmakers from states that are hardest hit by the policy but have had little luck in trying to get it reversed.
The policy has created an odd pairing of liberals and conservatives who don’t want to change the policy.
Progressive Democrats and Republicans from low-tax states have found themselves in rare alignment in opposing the repeal of the SALT caps. Republicans argue that the deductions were providing what they consider an unfair subsidy to wealthy states like New York and progressives say the benefits of these deductions are eaten up by only the wealthiest in the states.
