GOP tax law

Ways and Means to weigh rollback of state, local tax deduction cap
SALT cap in 2017 overhaul law hit taxpayers in high-tax states especially hard

Rep. Bill Pascrell Jr., D-N.J., said he expects the decision on whether to move legislation related to the SALT cap to be made in the next week. (Caroline Brehman/CQ Roll Call file photo)

Democrats on the House Ways and Means Committee will soon hold “at least a full-throttle discussion” about their concerns with the $10,000 cap on state and local income tax deductions that was part of the 2017 tax code overhaul, though it is uncertain whether that will lead to legislation that would increase or even repeal the limit.

Ways and Means Chairman Richard E. Neal of Massachusetts told reporters Tuesday that the Select Revenue Measures Subcommittee would be taking up the issue “pretty quick.”

The Americans paying more taxes
Podcast, Episode 140

The IRS currently faces the tough task of implementing the most sweeping tax overhaul in decades. (Bill Clark/CQ Roll Call file photo)

 

Tax season has begun, and upper-middle-income taxpayers earning between $120,000 and $200,000 in states with high local taxes are the most likely to be among the 5 percent who paid more last year because of the 2017 law, says Kyle Pomerleau, director of the Center for Quantitative Analysis at the Tax Foundation, a nonpartisan think tank. Doug Sword, CQ’s tax reporter, explains how congressional Democrats, and those running for president, are attacking the law.

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