As the 116th Congress gets settled in, Nancy Pelosi and fellow House Democrats are adjusting to their new reality of being back in the majority. With that comes an assessment of their policy priorities for the next two years. Among other initiatives, one of their targets appears to be the reinstatement of the state and local tax (SALT) deductions that were eliminated in the tax cuts package from 2017. A bill has already been introduced by Rep. Eliot Engel (D-N.Y.).
The SALT deductions are very simple. Taxpayers are given the option to deduct the amount of taxes they pay to state and local governments from their federal taxable income. This option was erased in the 2017 tax bill, and replaced with a doubling of the standard deduction.
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