Repealing Trump’s SALT Cap Deemed Unpopular as It Benefits Rich

Rep. Josh Gottheimer (D-N.J.) speaks at the podium standing with members of the Problem Solvers Caucus to praise the forthcoming passage of the bipartisan emergency COVID-19 relief bill in a press conference outside the U.S. Capitol in Washington on Dec. 21, 2020. Cheriss May/Getty Images

WASHINGTON—A bipartisan group of lawmakers is pushing to eliminate the cap on federal tax deductions for state and local taxes (SALT) but many argue that such a move would massively favor the rich.

For decades, the ability to deduct SALT has been an important tax break for taxpayers who itemize deductions on their federal income tax returns. The 2017 Tax Cuts and Jobs Act (TCJA), however, limited the deduction for SALT payments to $10,000 a year. Any state and local individual income or property tax payments in excess of that amount are no longer deductible by taxpayers.