Why Joe Biden Is Keeping the Cap on SALT Deductions

When the Trump administration pushed capping the federal tax deduction for state and local taxes (SALT), the plan was billed as a way to punish Democrats in high-tax states. But the move also increased federal revenues by as much as $100 billion. Now the Biden administration is showing little enthusiasm for undoing Trump’s cap. The cap means more federal revenues to help pay for Biden’s infrastructure plan. Nonetheless, Democrats in high-tax states like California, New Jersey, and New York are now threatening to hold up President Joe Biden’s plan in the…

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