Perhaps unknowingly, residents of low-income tax states have been subsidizing wealthy residents of high-income tax states for years through the federal tax code. The culprit is the state and local tax deduction, often referred to as the SALT deduction, even though sodium has nothing to do with it.
The Republican tax reform framework released at the end of September had much to love and some to be improved on. As it turns into a formal bill that hopefully moves swiftly through Congress under regular order, Republicans should resist the salty temptations of lobbyists and wean the country off the state and local tax deduction.
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