The years-long effort to restore the beloved SALT tax deduction is gaining traction, as Republicans push to get "one big beautiful" tax bill passed.
Why it matters: This would be an expensive deficit-expanding tax cut for folks in blue states that are relatively well-to-do.
Giving them a break while cutting benefits to lower-income Americans, also under discussion, could be politically difficult to explain.
By the numbers: Only about 4 million people would be able to take advantage of the state and local tax deduction, or SALT, if it were doubled for married couples as is under consideration,per an analysis from the Tax Policy Center.
94% of the benefits of doubling the deduction would flow to households earning more than $200,000 a year, according to an analysis from the nonpartisan Committee for a Responsible Federal Budget.
It could cost $4.1 trillion over the next decade.
Zoom in: In San Diego County, 20% of households make above $200,000, per 2023 census data.
About 30% of married-couple families meet that income threshold.
Meanwhile, many Americans could see higher paychecks and lower income taxes with new tax brackets, standard deductions and 401k contribution limits now in effect.
