When I saw the headline “Minimizing the Pain of the Trump Tax Cuts” over at the New York Times, I expected the usual liberal talking point about tax cuts; that they overwhelmingly benefit the rich. My second guess was that perhaps we’d hear an argument about how the tax cuts are starving government, which will force cuts to social services for the poor.
Little did I expect to see the Times bemoaning the fact that their fellow coastal elites would be paying more in taxes.
As you may already know, part of the Trump tax cut package (which cut personal income tax rates, and the corporate income tax) capped state and local tax deductions (such as state and local income taxes, and property taxes) to $10,000. While that cap doesn’t affect the average person, it does severely limit how much income a wealthy person can deduct against their federal income taxes.
This mainly impacts the wealthy in left-leaning coastal states. Simply because home prices are higher, those on the coasts have higher property tax burdens, and income taxes are higher on the coastal states than the heartland. The mortgage interest deduction is also capped in the Trump tax plan, only now applying to mortgages up to $750,000. These deductions are known as SALT (State And Local Tax) deductions.
And all of a sudden, the Times isn’t happy with that.