No. of Recommendations: 2
Dope: Blue states tax their residents more, who in the past were able to deduct these taxes from their federal returns giving blue state taxpayers an advantage over red state taxpayers. With the SALT limitations, that playing field has been leveled to the benefit of everyone.
There is no advantage Dope. Blue taxpayers pay high property taxes because the property is expensive within the commuting area. If you pay high property taxes the deduction helps you until alt min tax kicks in. The only reason most red staters don't get hurt is low property taxes, therefore they never hit the cap on the deduction and get to deduct it all. There's no disadvantage for red states, most red staters get to deduct all of their property taxes because you pay little tax. Alt min tax kicks in on high income taxpayers, and doesn't allow the deduction and so the full deduction helps a band of middle class taxpayers.
We could eliminate the deduction but the RE business has a big lobby. Trump would veto it.
