Higher SALT deduction relieves homeowners, adds to national debt

President Donald Trump’s “Big Beautiful Invoice” increased the state and local tax reduction to $ 2025, known as Salt to $ 2025. tax reduction for the first time in its history.

Taxpayers who allocate tax deductions may request salt cuts including state and local income taxes and real estate taxes. Trump’s 2017 legislation increased salt to $ 10,000. Before 2018, the deduction was unlimited – but for some rich households, alternatives were cut with minimum tax.

RN.Y. “This has come into force for more than 100 years before the transition of Tax Duties and Labor Law,” his representative Mike Lawler. He said.

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In 1913, the Congress imposed an unlimited state and local tax reduction. The target of MPs: Some of them reduced that they are considering double taxation.

However, when the Republicans needed payments for other tax cuts in the 2017 bill, they hosted the closure of the state and local deductions and firstly argued that they provided benefits to richer Americans in the fields of high life costs.

According to the 2021 report, the households who earn $ 1 million or more money would take half of the benefit if the salt hat was repealed. Tax policy center.

However, the data shows that less rich families also save the high cover in the fields of high life costs, especially other than big cities.

According to one two -sided policy centers, in 2022 Connecticut, New York, New Jersey, California and Massachusetts in states such as the average salt cut was close to $ 10,000. analysis With the latest IRS data. Researchers show that these high averages claim that “most of the taxpayers opposed the $ 10,000 border”.

Meanwhile, the provinces with the highest share of salt plaintiffs and the district were Washington, DC, Maryland, California, Utah and Virginia.

Higher real estate taxes are also pressing many hosts. National Median Annual Real Estate Tax increased 23 % According to the National Real Estate Association, between 2019 and 2023.

State and local taxes are very important to finance public services. In 2022, New York Province and local governments spent $ 15,368 per person. That year, the state received 12,751 dollars of taxes per person. New York Citizens Budget Commission.

“These roads, bridges, school regions were interested in the Westchester District Manager Ken Jenkins.” He said. Westchester County in New York has the highest real estate tax bills in the country.

Increasing the boundary on deductions reduces the amount of income received by the federal government.

This contributes to the national deficit, which was $ 1,628 trillion in 2025 financially. According to the Treasury Department.

The higher salt limit is expected to increase the national debt more than $ 142 billion in 10 years. Common Committee of Taxation. The Tax Foundation estimates that the increasing border will cost approximately 320 billion dollars compared to the extension of the current border.

Watch video To learn more about why the Congress raised the salt hat this summer above.

– CNBC personal finance reporter Kate Dore contributed to a report on this story.

Correction: This article was updated to correct the title of New York Citizens Budget Commission.