Bulk of SALT Cap Repeal Benefits Would Go to Households Earning Half a Million or More: Study

Around 70 percent of the benefit from repealing the federal cap on the state and local tax (SALT) deduction would go to households making $500,000 or more per year, while just one percent of the benefit would go to those earning $100,000 or less, according to a recent┬ástudy from the Tax Policy Center. Earlier in April, more than 30 bipartisan members of the House formed the SALT caucus to push for a repeal of the cap, with caucus members stating that the move would provide tax relief to “hard-working middle-class families.” But the Tax Policy Center analysis shows that abolishing the cap would be a windfall for higher-income households, with those earning $1 million or more per year set to receive 49 percent of the benefits and nearly 93 percent of such households seeing an average tax cut of nearly $48,000. Further, 97.6 percent of households earning between $50,000 and …

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