Sep 18, 2024
By Caden Pearson Contributing Writer  Former President Donald Trump suggested on Tuesday that if he returns to the White House, he’ll restore the state and local tax deductions capped under his administration in 2017.  Ahead of a campaign rally in Long Island on Wednesday, Trump said in a Truth Social post that he plans to “get SALT back, lower your taxes, and so much more.”  The former president didn’t provide details, but his post previewed what he was to discuss at his rally in Long Island, a key swing area important for lawmakers seeking to control the U.S. House of Representatives in November.  The SALT deduction allows taxpayers to deduct a portion of their state and local property taxes, income taxes, and sales taxes from their federal taxable income. Over the decades since it was introduced in 1913, restrictions have been put on the types of fees and taxes on which taxpayers can claim deductions.  The SALT deductions were capped at $10,000 in 2017 under the Trump-backed Tax Cuts and Jobs Act. The policy affected wealthier taxpayers in high-tax states such as New York, New Jersey, and California who itemize their deductions and was challenged and opposed by Democratic lawmakers.  Responding to Trump’s post on Tuesday, Senate Majority Leader Chuck Schumer, D-New York, wrote on X: “Donald Trump took away your SALT (deductions) and hurt so many Long Island families. Now, he’s coming to Long Island to pretend he supports SALT. It won’t work.”  At the Democratic National Convention in August, Schumer said the SALT deductions are a key issue for Long Islanders and that the current cap “will be gone” when it expires at the end of 2025.  The deduction is a crucial issue for voters in high-tax states. Before the SALT deduction was capped at $10,000, residents in these states could deduct large amounts of these taxes from their federal taxable income, reducing their overall tax burden. After the cap, high-income earners, in particular, saw their taxes increase.  According to the Bipartisan Policy Center, a tradeoff to capping the SALT deduction was that taxpayers received a higher standard deduction.  When the cap expires at the end of 2025, taxpayers may claim SALT deductions again unless Congress acts before the expiration.  Fleeing High-Tax States  Recent IRS tax migration data covering returns filed between 2020 and 2021 shows that taxpayers have increasingly left high-tax states such as New York, California and Illinois for lower-tax destinations such as Florida, Texas and Tennessee.  These states, known for their higher tax burden, along with others such as New Jersey and Minnesota, are among the top 10 biggest net losers of adjusted gross income, while states such as Florida, Texas and Tennessee are among the largest net gainers, according to the National Taxpayers Union Federation.  Trump’s promise is part of a broader effort to attract voters in New York, a state that hasn’t supported a Republican presidential candidate in decades.  “People are fleeing,” Trump said on Tuesday. He vowed to work with both Democratic Gov. Kathy Hochul and New York City Mayor Eric Adams to secure funding and bring back residents who have left due to rising taxes and crime.  “Maybe we’ll get them to ‘flee back!’” he said.  The Republican presidential nominee was scheduled to host a rally at Nassau Veterans Memorial Coliseum on Long Island on Wednesday night. He planned to address supporters at what he described as a crucial moment for New York’s future.  The post Trump says he’ll restore SALT deduction, lower taxes ahead of Long Island rally  appeared first on Santa Clarita Valley Signal.
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