White House Tax Adviser: State Deduction May Only Disappear For Top 1%
The state and local tax (SALT) deduction will remain in place for 99 percent of taxpayers, a White House tax adviser predicted Friday.
In an interview with WMAL Friday morning, Heritage Foundation economist Stephen Moore dismissed fears that the new GOP tax plan will fully repeal the SALT deduction.
“At the end of the day, you heard it first here at WMAL, I think this provision will only apply to people in the top one percent of income, so 99 percent of people will not even be effected by this,” Moore said. “If they get rid of the state and local tax deduction it will only apply to people who, let’s say, make over $500,000 or $1 million a year.”
Many details of the Republican tax plan are still being finalized as lawmakers debate over and mold the bill in Congress. GOP lawmakers from highly taxed states, which benefit most from SALT deductions, are resisting repealing the provision.
The House passed a budget resolution Thursday that allows Congress to fast-track tax reform and avoid any Democrat filibuster of the legislation. Twenty House Republicans voted against the measure, however, largely over the threat of SALT deduction repeal.
Although many GOP lawmakers are on board with repealing SALT deductions, a narrow repeal is much more likely to come out of the discussion and end up in the actual bill.
“Well, what I’m saying is that’s where its going to end up. This is one of the things that they’re considering and, I’ve been to this rodeo before, I know how this is going to turn out,” Moore said. If SALT deductions are repealed for the top 1 percent and “they don’t cut their taxes in New York and California, and you don’t move out of that state, then you’re an idiot,” Moore concluded.
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