House Democrats on Friday passed their $1.75 trillion spending package with a temporary increase for the limit on the federal deduction for state and local taxes, known as SALT.
The bill would boost the limit to $80,000 from 2021 through 2030 before dropping it back to $10,000 in 2031. Without changes, the current $10,000 cap will expire after 2025.
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However, opponents say the measure is a write-off for higher earners.
“The current House version of SALT gives millionaires thousands in cash, while people who make less than about $100,000 per year get less than $20 on average,” tweeted Rep. Jared Golden, D-Maine, who voted against the bill.
The provision is likely to change in the Senate, where top Democrats are already exploring other forms of SALT deduction relief.
“It’s not about tax cuts for wealthy people,” said House Speaker Nancy Pelosi in her weekly press conference. “It’s about services for the American people.”