Letting SALT Cap Expire Would Cost $1.2 Trillion, Group Says

Aug. 28, 2024, 9:00 PM UTC

Allowing the $10,000 state-and-local tax deduction cap to expire would cost the federal government $1.2 trillion, a budget watchdog group forecast.

The cost estimate from the nonpartisan Committee for a Responsible Federal Budget, released Wednesday, found that extending the expiring tax breaks from the 2017 tax law, except for the SALT cap, would add nearly $5.1 trillion to the US deficit over 10 years. The SALT cap was implemented as a way to partially offset the cost of the 2017 tax overhaul, but has been a politically fraught issue on both sides of the aisle since then.

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