This is the Kaderie Daily Podcast for Thursday, July 13th,

2023, and Caleb Brown.

You think that Democrats broadly would want to not give a generous tax break to the highest income taxpayers.

But many House Democrats are leaders in the push to expand the so-called salt deduction,

a federal tax deduction for state and local taxes paid.

Caters Adam Michelle discusses the deduction and the perverse incentives

expanding it would create.

What is the status of the cap on state and local, the state and local tax deduction that people

enjoyed a great deal more of prior to the 2017 tax reform.

Well, it's still capped.

The 2017 tax cuts, cap, put a $10,000 cap on this deduction as part of a broad set of reforms and the

revenue was used to lower rates across the board for all Americans, but there's still some folks in Congress that

continue to want to to talk about this cap and are agitating to to fully

remove the cap in sort of pending legislation and so it continues to bubble

to the surface and complicate sort of all legislative conversations but particularly those

have to do with taxes.

And lawmakers in California, mostly Democrats in California and New York and some other places

would like to see this restored.

What does, what changes immediately if the state and local tax deduction is effectively

restored to its previous robustness.

So particularly Congress folks that represent high-income congressional districts in high tax states in New York and California and Illinois.

I want to remove the cap, making it the deduction unlimited again, which is effectively in

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