DEMOCRATS WANT TO PAY FOR SALT CAP REPEAL WITH MORE TAX AUDITS

April 18, 2021 by TxSEA
DEMOCRATS-WANT-TO-PAY-FOR-SALT-CAP.jpg?time=1642803980

Repealing the $10,000 cap on state and local tax (SALT) deduction could be offset by cracking down on tax cheats in this
proposal from Democrats.

Representative Josh Gottheimer said that by increasing funding for the Internal Revenue Service to enforce efforts would

yield enough money to pay for reinstating the full SALT deduction as well as a portion of President Biden’s $2.25 trillion

infrastructure package.

Gottheimer, along with several other House Democrats and a few Republicans from high-tax states, have said they will

not support Biden’s infrastructure bill if it does not address re-instituting the full SALT deduction.

Restoring the full deduction would cost the government $88.7 billion in revenue for 2021 alone, according to the Joint

Committee on Taxation.

Gottheimer and Representative Ro Khanna would want to raise minimum audit levels on corporations and high-earning

individuals as a way to help close the gap in lost revenue.
Khanna believe this bill could raise $1.2 trillion over a decade.
Some congressional Democrats and some Republicans support increased IRS enforcement as a way to raise more tax

revenue without having to raise tax rates.

TxSEA_GreyStar_White

100 Center Dr
Del Rio, TX 78840
Email: info@txsea.org

Join the TxSEA mailing list

    Copyright by Texas Society of Enrolled Agents. All rights reserved.