Bigger state and local tax deductions still possible as Democrats grapple over spending plan

Asia's Tech News Daily

House Speaker Nancy Pelosi, D-Calif., speaks outside of the U.S. Capitol on Oct. 20, 2021.Mandel Ngan | AFP | Getty Images

As Democrats wrestle over their spending package, key lawmakers are still fighting to change the $10,000 cap on the federal deduction for state and local taxes.

The measure, known as SALT, is a priority among lawmakers in high-tax states, such as New York, New Jersey and California, jeopardizing the Democrats' multitrillion-dollar plan.

The budget can pass without Republican support. However, Democrats need votes from nearly every member of the House and all Democratic senators.

Rep. Josh Gottheimer, D-N.J., who met with President Joe Biden and other party centrists on Tuesday, said he emphasized the importance of restoring the write-off, among other priorities, for families in his district.   

More from Personal Finance:
Inflation is here for now. How top financial advisors are handling it
Proposed elimination of Roth conversions for wealthy wouldn't start till 2032
First bitcoin futures ETF starts trading. What to know before investing

“I'm working around-the-clock with my colleagues in the House and Senate to reinstate SALT,” he said. “I'm also continuing to have conversations with the White House and leadership to ensure SALT is included in the final package.”

Rep. Tom Suozzi, D-N.Y., a long-time proponent of the SALT cap repeal, also re-affirmed his commitment to the issue.

“I have spoken to Sen. Schumer, Speaker Pelosi and Chairman Neal and am confident SALT will be included in the final package,” said Suozzi. “Restoration of the SALT deduction is essential for the economic health of New York and its middle-class families.”

“No SALT, no deal,” he added.

I have spoken to Sen. Schumer, Speaker Pelosi and Chairman Neal and am confident SALT will be included in the final package.
Rep. Tom Suozzi
Democratic congressman from New York

The measure has also been a priority for other key lawmakers, including House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-N.Y.

While Pelosi and Schumer aim for agreements on budget provisions by the end of the week, changes to the SALT cap are still pending.

Ongoing battle

The SALT limit has been controversial since former President Donald Trump added the cap during his signature 2017 tax overhaul.

Now, Americans who itemize deductions can't write off more than $10,000 for property and state income taxes on their federal return.

But ditching the measure may be expensive. The SALT limit deduction brought in $77.4 billion during its first year, according to the Joint Committee on Taxation, and a full repeal for 2021 may cost up to $88.7 billion, and more going forward. Plus, Republicans have mostly supported the cap.

While the so-called SALT Caucus, a group of bipartisan lawmakers pushing for repeal, say the limit hurts middle-class families, opponents say a change may primarily help the wealthy. 

More than 96% of the benefit may flow to the top 20% of earners, according to the Tax Policy Center, affecting only 9% of American households. 

In the meantime, several high-tax states now offer SALT cap workarounds for pass-through business owners, allowing some companies to skip the deduction limit by using a state levy to cover some of the owner's state income taxes.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Profit Off the Recruiting Boom With These 3 Zacks #1 Ranked Stocks

The labor market has experienced an unprecedented ride over the past eighteen months. Over 22 million jobs were lost between March and April of 2020 when the country was shutdown ... Read more »

Earnings Estimates Rising for Kulicke and Soffa (KLIC): Will It Gain?

Kulicke and Soffa (KLIC) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might ... Read more »

3 Reasons Why Vista Outdoor (VSTO) Is a Great Growth Stock

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market’s attention and deliver solid returns. But finding a growth stock ... Read more »

All You Need to Know About Ingredion (INGR) Rating Upgrade to Buy

Ingredion (INGR) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates — one of the ... Read more »

3 Reasons Why QuinStreet (QNST) Is a Great Growth Stock

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market’s attention and deliver solid returns. But finding a growth stock ... Read more »

RKT or TRI: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Technology Services sector have probably already heard of Rocket Companies (RKT) and Thomson Reuters (TRI). But which of these two stocks presents investors with ... Read more »

3 Chip Stocks to Buy in December

The semiconductor industry has been aggressively expanding its manufacturing capabilities amid the global chip shortage. And because the demand for semiconductors is expected to rise over time, the industry is ... Read more »

EBKDY vs. WBK: Which Stock Is the Better Value Option?

Investors looking for stocks in the Banks – Foreign sector might want to consider either Erste Group Bank AG (EBKDY) or Westpac Banking Corporation (WBK). But which of these two ... Read more »

TTE or ORA: Which Is the Better Value Stock Right Now?

Investors with an interest in Alternative Energy – Other stocks have likely encountered both TotalEnergies SE Sponsored ADR (TTE) and Ormat Technologies (ORA). But which of these two stocks presents ... Read more »

UK house prices remain turbo-charged while sales that support market have fallen

Photograph: Yui Mok/PA Cutting stamp duty and interest rates saved financial system from hardship but widened property wealth gap A buoyant private sector housing market is one of the key ... Read more »

Control of Senate may depend on fate of paid family leave legislation

Christine Schneider | Cultura | Getty Images A proposal for federal paid family leave is at risk of ending up on the chopping block as Washington lawmakers work to finalize ... Read more »

Sadiq Khan fears defeat in crisis talks to stop the Tube going bankrupt

Sadiq Khan on the tube with a face mask on Sadiq Khan is locked in last-ditch talks to prevent London’s transport network going bankrupt, with government officials digging in their ... Read more »

Darktrace and Johnson Matthey ousted from FTSE 100

Tech darling Darktrace will be booted off the UK’s top index three months after it entered the FTSE 100. Chemicals and engineering company Johnson Matthey will also be ousted from ... Read more »

Ex-Tesco boss ‘humbled to get knighthood on behalf of food industry heroes'

Tesco’s former chief executive has said he feels “honoured and humbled” to have received a knighthood on behalf of people in the food industry who “put feeding the country first” ... Read more »

From a Debenhams to a creative hub: closed stores get new lease of community life

Empty department stores are being transformed into places for young entrepreneurs and social projects It was once the launchpad for a national department store chain, now the former Binns site ... Read more »

Dutch energy company Anode Energie insolvent due to high prices

AMSTERDAM (Reuters) -Dutch energy company Anode Energy plans to file for bankruptcy, the company said on Wednesday, the third in the Netherlands this year to become insolvent due to high ... Read more »

Stocks making the biggest moves midday: Vertex Pharmaceuticals, Moderna, Lennar, Salesforce and more

Salesforce signage outside office building in New York.Scott Mlyn | CNBC Check out the companies making headlines in midday trading Wednesday: Allbirds — Allbirds shares sunk more than 13% after ... Read more »

FTSE 100 posts biggest rise in four months as travel shares rally – business live

LIVE – Updated at 17:31 © Photograph: Henry Nicholls/Reuters People walk through the City of London financial district today Rolling coverage of the latest economic and financial news. FTSE 100 ... Read more »

European markets rebound amid hopes Omicron effects could be mild

European markets sprang back into life as comments from the World Health Organisation that the Omicron variant of Covid-19 could be mild gave traders a lift. London stocks bounced higher ... Read more »

Financial watchdog cracks down on bank overdraft fees

Rohit Chopra, director of the Consumer Financial Protection Bureau. Alex Edelman/Bloomberg via Getty Images The Consumer Financial Protection Bureau is cracking down on banks charging fees for customers who overdraw ... Read more »

'Hammer blow' to high street as TSB closes 70 branches

© Leon Neal/Getty Images The TSB logo is seen on the exterior of a branch of the high street bank The banking giant said the closures were in response to ... Read more »

Amazon opens more till-free stores in two of London's poshest High Streets

(Getty Images) ONLINE retail giant Amazon continues its march on the capital’s high streets with the opening of two more walk-in, walk-out convenience stores in posh, rich Angel, Islington, and ... Read more »

Swiss banks, gov't partner up to raise $1 billion for development projects

1 / 3Swiss banks, gov’t partner up to raise $1 billion for development projectsFILE PHOTO: FILE PHOTO: The logo of Swiss bank UBS is seen in Zurich By Brenna Hughes ... Read more »

3 Insurance Stocks That Have Outperformed S&P 500 YTD

The insurance industry that suffered in 2020 due to the pandemic has done well so far this year. The industry has gained 9% year to date compared with the Finance ... Read more »

Best Value Stocks to Buy for December 1st

Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 1st: – Zacks The Chemours Company CC: This provider of performance chemicals has a ... Read more »

Pre-Markets Up on Better-than-Expected Private Jobs Addition

A very welcome private-sector monthly jobs report from Automatic Data Processing ADP greets market participants this morning, with a better-than-expected 534K new private-sector jobs reportedly created for the month of November. This is ... Read more »

Honeywell (HON) Merges Quantum Solutions With Cambridge Quantum

Honeywell International Inc. HON yesterday announced that it has combined its Quantum Solutions business with Cambridge Quantum. The business combination was announced in June 2021. The newly created entity, Quantinuum, ... Read more »

ADP Jobs 534K, Better than Expected; Markets Up

Wednesday, December 1, 2021A very welcome private-sector monthly jobs report from Automatic Data Processing ADP greets market participants this morning, with a better-than-expected 534K new private-sector jobs reportedly created for ... Read more »

AstraZeneca, Merck's Lynparza sNDA Gets FDA Priority Tag

AstraZeneca AZN and partner Merck MRK announced that the FDA has accepted their supplemental new drug application (sNDA) seeking expanded use of PARP inhibitor Lynparza in breast cancer. – Zacks The ... Read more »

Orion (ORN) Wins Multiple Deals for Concrete & Marine Units

Orion Group Holdings, Inc. ORN has won several contracts under the Concrete and Marine segments for a combined value of approximately $44 million.Under the Concrete unit, Orion received three contracts ... Read more »

5 Best Sector ETFs of November

November was a volatile month for Wall Street as rounds of upbeat earnings fueled strong optimism while rising inflation, a surge in COVID-19 cases and Fed’s taper talks continued to ... Read more »

New Strong Buy Stocks for December 1st

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: – Zacks The Chemours Company CC: This provider of performance chemicals has seen the Zacks Consensus ... Read more »

Materials ETF (REMX) Hits New 52-Week High

For investors seeking momentum, VanEck Rare Earth/Strategic Metals ETF REMX is probably on radar. The fund just hit a 52-week high and is up about 124% from its 52-week low ... Read more »

Alitalia successor ITA orders 28 aircraft from Airbus

ITA Airways Chairman Alfredo Altavilla poses with the image of the new livery for the carrier’s jets PARIS (Reuters) – Italy's new ITA Airways has ordered 28 Airbus planes, the ... Read more »

Inflation in Russia nears six-year peak ahead of cenbank meeting

FILE PHOTO: A view shows Russian rouble coins in this illustration picture MOSCOW (Reuters) – Russia's annual inflation accelerated to a near six-year peak of 8.38% in late November, weeks ... Read more »

Reasons to Hold Pentair (PNR) Stock in Your Portfolio Now

Pentair plc PNR has been benefiting from strong demand in its residential focused businesses. Activity in industrial and commercial businesses continues to pick up and demand for pool maintenance remains ... Read more »

Private Payrolls' Growth Surpasses November Expectations

Private payrolls in the U.S. grew by 534,000 in November, beating the 506,000 expectations according to payroll processing company ADP on Wednesday. The data shows businesses were successful at hiring ... Read more »

Ambarella (AMBA) Q3 Earnings and Revenues Beat Estimates

Ambarella AMBA reported third-quarter fiscal 2022 non-GAAP earnings of 57 cents per share, which outpaced the Zacks Consensus Estimate by 16.3%. The reported figure jumped over six-fold from the prior-year ... Read more »

2 Life Sciences Software Stocks to Buy Right Now

Rising investments in various segments of the life science industry, and rapid tech integration, make its long-term growth prospects look bright. So, we believe that the heightened need for tracking ... Read more »

Zscaler (ZS) Earnings & Revenues Surpass Estimates in Q1

Zscaler ZS delivered better-than-anticipated first-quarter fiscal 2022 performance.Zscaler reported non-GAAP earnings of 14 cents per share, which beat the Zacks Consensus Estimate of 12 cents per share. The bottom line ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic