Democrats consider undermining administration’s ability to crack down on tax avoidance dailysign.al/2W0QZt1 via @adamnmichel @DailySignal
@adamnmichel @DailySignal Senate Democrats are trying to chip away at critical elements of the 2017 tax cuts.
Included in the 2017 tax cuts is the new $10,000 cap on the state and local tax (SALT) deduction, one of the reform’s signature achievements.
Included in the 2017 tax cuts is the new $10,000 cap on the state and local tax (SALT) deduction, one of the reform’s signature achievements.
@adamnmichel @DailySignal The cap advanced the bipartisan goal of treating taxpayers across the income scale more fairly by diminishing the previously unlimited subsidy for high-income taxpayers in high-tax states.
@adamnmichel @DailySignal The Senate is set to vote to overturn regulations necessary to implement the cap. Overturning the regulations could increase the deficit by $673 billion over 10 years and encourage high-income taxpayers to avoid taxes and make a profit in the process.
@adamnmichel @DailySignal Undermining the SALT cap would begin to chip away at the core achievements of the 2017 Tax Cuts and Jobs Act.
Senators may be motivated by two misconceptions about the SALT deduction and the implementing regulations.
Senators may be motivated by two misconceptions about the SALT deduction and the implementing regulations.
@adamnmichel @DailySignal Myth No. 1: The Cap Hurts Middle-Class Taxpayers
Before the 2017 tax cut capped the SALT deduction, 70% of taxpayers received no benefit from it. Most of the benefits flowed to wealthy taxpayers in high-tax states.
Before the 2017 tax cut capped the SALT deduction, 70% of taxpayers received no benefit from it. Most of the benefits flowed to wealthy taxpayers in high-tax states.
@adamnmichel @DailySignal Myth No. 2: The Regulations Hurt State-Based Tax Credit Organizations
To implement the SALT cap, the Treasury Department wrote regulations to disallow the use of new state tax credit schemes set up to game the charitable deduction and circumvent the SALT cap.
To implement the SALT cap, the Treasury Department wrote regulations to disallow the use of new state tax credit schemes set up to game the charitable deduction and circumvent the SALT cap.
@adamnmichel @DailySignal These new programs would allow savvy taxpayers to artificially recharacterize their state taxes as charitable donations, which are not subject to the $10,000 cap.
