Nearly 11 million people are losing out on state and local tax breaks due to the 2017 tax law overhaul — and now there’s a hefty price to pay.
The Treasury Inspector General for Tax Administration recently released a report that estimates the combined tax bill for the 10.9 million people on the hook for property taxes above the $10,000 cap totals $323 billion, according to Bloomberg.
The tax overhaul limited the amount of state and local taxes, dubbed SALT, that taxpayers can write off to $10,000. The change especially affects those in high-tax states like New York, New Jersey, Maryland and California. As a result, some wealthy homeowners are decamping for lower tax states, like Florida.
Representative Thomas Suozzi, a New York Democrat, estimated that about half of his constituents are getting squeezed by the SALT cap.
“They are just getting battered,” he said. “The cost of living is so high that they are just getting by.”
The report comes in the midst of tax season, as taxpayers are filing returns under the new law for the first time. Many taxpayers have found their refunds are smaller than expected as a result of the law change for SALT deductions.
New York Gov. Cuomo recently met with President Donald Trump to discuss revising the SALT cap, which the president said he was “open to talking about.” Senate Republicans have said they’re not willing to make revisions. [Bloomberg] — Meenal Vamburkar