SALT Cap Repeal Would Exacerbate Racial Inequities
A new analysis from the Institute on Taxation and Economic Policy provides critical data for the debate over whether to repeal the $10,000 cap on state and local tax (SALT) deductions.
The report, Not Worth Its SALT: Tax Cut Proposal Overwhelmingly Benefits Wealthy, White Households, finds that repeal of the SALT cap without other reforms would worsen economic disparities and exacerbate racial inequities baked into the federal tax system. Black and Hispanic families are respectively 42 percent and 33 percent less likely to benefit from SALT repeal than white families. Overall, 72 percent of the benefit of SALT repeal would go to white households. More specifically, white households earning more than $200,000 a year are 6.7 percent of all households but would receive 66.8 percent of the benefit of SALT repeal.