Today we’re diving into one of the most contentious tax battles happening in Washington right now—the State and Local Tax deduction (SALT). Now, if you’ve been hearing politicians talk about “tax relief for hard-working homeowners” or “supporting middle-class families,” you might think this sounds pretty good, right?

But here’s the thing— like so many tax policies that sound great on the surface, the SALT deduction is actually one of the most regressive tax breaks in our entire system. We’re talking about a policy that overwhelmingly benefits wealthy households while doing absolutely nothing for the majority of Americans. And right now, Congress is debating whether to make this tax break even more generous.

Resources

Brookings: The SALT tax deduction is a handout to the rich. It should be eliminated not expanded

CNBC: Trump’s ‘big beautiful bill’ passes SALT deduction limit of $40,000. Here’s who benefits

Forvis Mazars: Be Wary of Pre-Emptive Tax Planning on Itemized Deductions & SALT

TIME: A Wonky Tax Break for the Well-Off Is a Bigger Problem for Democrats Than You'd Think

Gottheimer: RELEASE: SALT Caucus Co-Chairs, Members Meet & Discuss Fight to Restore State and Local Tax Deduction

Tax Foundation: A More Generous SALT Deduction Cap in the Big, Beautiful Bill Would Cost Revenue and Primarily Benefit High Earners

RSM US: Bill limits SALT deductions for some financial and professional services firms

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Today we&rsquo;re diving into one of the most contentious tax battles happening in Washington right now&mdash;the State and Local Tax deduction (SALT). Now, if you&rsquo;ve been hearing politicians talk about &ldquo;tax relief for hard-working homeowners&rdquo; or &ldquo;supporting middle-class families,&rdquo; you might think this sounds pretty good, right?
But here&rsquo;s the thing&mdash; like so many tax policies that sound great on the surface, the SALT deduction is actually one of the most regressive tax breaks in our entire system. We&rsquo;re talking about a policy that overwhelmingly benefits wealthy households while doing absolutely nothing for the majority of Americans. And right now, Congress is debating whether to make this tax break even more generous.
Resources
Brookings: <a href="https://www.brookings.edu/articles/the-salt-tax-deduction-is-a-handout-to-the-rich-it-should-be-eliminated-not-expanded/">The SALT tax deduction is a handout to the rich. It should be eliminated not expanded</a>
CNBC: <a href="https://www.cnbc.com/2025/07/03/trumps-big-beautiful-bill-salt-deduction.html">Trump&rsquo;s &lsquo;big beautiful bill&rsquo; passes SALT deduction limit of $40,000. Here&rsquo;s who benefits</a>
Forvis Mazars: <a href="https://www.forvismazars.us/forsights/2025/03/be-wary-of-pre-emptive-tax-planning-on-itemized-deductions-salt">Be Wary of Pre-Emptive Tax Planning on Itemized Deductions &amp; SALT</a>
TIME: <a href="https://time.com/6128775/salt-cap-democrats-divided/">A Wonky Tax Break for the Well-Off Is a Bigger Problem for Democrats Than You'd Think</a>
Gottheimer: <a href="https://gottheimer.house.gov/posts/release-salt-caucus-co-chairs-members-meet-discuss-fight-to-restore-state-and-local-tax-deduction">RELEASE: SALT Caucus Co-Chairs, Members Meet &amp; Discuss Fight to Restore State and Local Tax Deduction</a>
Tax Foundation: <a href="https://taxfoundation.org/blog/salt-deduction-cap-increase-proposal-analysis/">A More Generous SALT Deduction Cap in the Big, Beautiful Bill Would Cost Revenue and Primarily Benefit High Earners</a>
RSM US: <a href="https://rsmus.com/insights/tax-alerts/2025/bill-limits-salt-deductions-for-some-financial-and-professional-services-firms.html">Bill limits SALT deductions for some financial and professional services firms</a>
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Unf*cking The Republic® (UNFTR) is dedicated to progressive politics, leftist economic theories, and social justice in the United States. Join us for deep dives into socialism, labor rights, climate justice, and the fight against inequality. Whether you're curious about Marxist ideas, modern social movements, or progressive policies, UNFTR delivers thoroughly sourced critiques, analyses, and interviews with the historical context mainstream media won't provide. Subscribe for informative and unabashedly progressive coverage of the leftist political and economic landscape.

Unf*cking The Republic&reg; (UNFTR) is dedicated to progressive politics, leftist economic theories, and social justice in the United States. Join us for deep dives into socialism, labor rights, climate justice, and the fight against inequality. Whether you're curious about Marxist ideas, modern social movements, or progressive policies, UNFTR delivers thoroughly sourced critiques, analyses, and interviews with the historical context mainstream media won't provide. Subscribe for informative and unabashedly progressive coverage of the leftist political and economic landscape.

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