Democratic divisions on display over SALT wars

The SALT showdown brewing in Congress over the question of removing a $10,000 cap on state and local tax deductions is roiling the Democratic party.

The cap, a creation of President Trump’s Tax Cuts and Jobs Act of 2017, disproportionately affects New York and other blue states with high local taxes. Before the Trump reform, federal income taxpayers were able to deduct all local and state taxes from their tax bill, no matter how rich they were or how much they were paying in local property taxes. Long Island Rep. Tom Suozzi says he is prepared to hold up President Biden’s emerging infrastructure bill if the cap removal is not included in its final text.