The state and local tax deduction could change amid Trump's tax cuts debate. Here's what to know

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The state and local tax deduction could change amid Trump's tax cuts debate. Here's what to know

_{//politics-government.news-articles.net/content/ .. trump-s-tax-cuts-debate-here-s-what-to-know.html}
^{Published in Politics and Government on Thursday, March 13th 2025 at 15:01 GMT by CNBC}

The state and local tax deduction could change in 2025 as lawmakers debate Trump's tax cuts. Here's what to know.

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The article from MSN discusses potential changes to the State and Local Tax (SALT) deduction as part of the ongoing debate over former President Donald Trump's tax cuts. The SALT deduction allows taxpayers who itemize to deduct certain taxes paid to state and local governments from their federal taxable income. Currently, there is a cap of $10,000 on these deductions, which was introduced by the Tax Cuts and Jobs Act of 2017. This cap has been a point of contention, particularly in high-tax states where residents feel disproportionately affected. With the looming expiration of several provisions of the Trump tax cuts in 2025, there's speculation on whether this cap might be adjusted or eliminated. Democrats have pushed for its removal, arguing it unfairly burdens middle-class families in states with high taxes, while some Republicans see it as a way to offset revenue losses from other tax cuts. The debate involves considerations of federal revenue, state fiscal policies, and the broader implications for tax equity and economic policy.

Read the Full CNBC Article at:
[ https://www.msn.com/en-ph/politics/government/the-state-and-local-tax-deduction-could-change-amid-trump-s-tax-cuts-debate-here-s-what-to-know/ar-AA1AN4jE ]

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