House Democrat plan bumps state and local tax cap to $80,000 till 2030
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Rep. Josh Gottheimer, (D-NJ), (C), and Rep. Tom Reed, (R-NY), (3rd R), are co-chairs the bipartisan Problem Solvers Caucus to emphasize the importance of bipartisan, bi-partisan COVID-19 relief legislation. The news conference was held on December 3, 2020, in Washington DC.
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The House Democrats changed their spending package late Thursday by changing the state-and local tax limit, also known as SALT.
According to The Advocate, the new plan will increase the limit to $80,000, from $10,000 per year until 2030 to $80,000, while the 10,000 limit will return to 2031. amendment — a $7,500 hike and a one-year term decrease from Wednesday’s proposal
In a joint statement, Reps. Josh Gottheimer (D-N.J.), Tom Suozzi (D-N.Y.) and Mikie Sherrill (D-N.J.) stated that they have been fighting the unfair targeted tax from its inception.
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The agreement was reached to eliminate “the undue burden” for most of the households in their districts that have been unfairly taxed over the past four years.
Opponents had already objected to Wednesday’s $72,500 cap, arguing that the write-off would primarily be in the best interests of higher income earners.
A Tax Policy Center study found that only 1.6% of middle income families earn between $54,000- $96,000 would be able to see the benefit from raising the cap to $72,500 in 2021. analysisThe average tax cut is $20
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