The Winston Group’s David Winston writes in today’s Roll Call about the debate over the state and local tax deduction, who benefits from it what it means for the overall reconciliation bill.
But how many people itemize and take advantage of the SALT deduction that stands in the way of re-upping the 2017 tax cuts?
Not nearly as many as one might think listening to the argument for raising the deduction.
According to the Congressional Research Service, 9.5 percent of filers nationally claimed the SALT deduction in itemizing their 2022 returns. We know that those who don’t itemize generally have lower incomes than those who do. As a result, the SALT deduction benefited wealthier taxpayers almost entirely.
Letting the 2017 tax cuts expire would dramatically favor upper-income earners, particularly in Democratic states at the expense of moderate and lower-income people in Republican states.
Read the full piece here.
