Discussion on lifting the SALT cap and NYC congestion pricing
Rep. Mike Lawler, R-NY, discusses Trump meeting with blue state Republicans over lifting the SALT cap and NYC congestion pricing. Blue-state lawmakers want to lift the cap on the federal income-tax deduction for state and local taxes, known as SALT, which primarily benefits the wealthy. This move would shift the tax burden to middle-class families nationwide.
Key Points
- SALT deduction primarily benefits the wealthy
- Middle-class families wouldn't gain from raising the SALT cap
- Raising SALT deduction would shift tax burden to middle-class families nationwide
Pros
- Protects middle-class households from subsidizing wealthy taxpayers in high-tax states
- Addresses the injustice of hidden wealth transfer from low-tax states to high-tax states
Cons
- Primarily benefits wealthy households earning $200,000 or more
- Creates budget shortfalls and leads to higher taxes for the majority