The Wall Street Journal
The SALT Cap Has a $20 Billion Hole
WASHINGTON—Many business owners can easily—and legally—dodge the $10,000 cap on state and local tax deductions, and that costs the federal government as much as $20 billion a year, according to a new estimate by the Tax Policy Center. The so-called SALT cap limits the break that individual taxpayers can get by deducting their state and local taxes from their federal taxable income. As a result, the cap—part of the 2017 tax overhaul—is generating 80% to 85% of its intended revenue, according to the Tax Policy Center, which is a joint venture of the Urban Institute and Brookings Institution.