Donald Trump’s tax law is about to screw over nearly 11 million American taxpayers, the Treasury Inspector General for Tax Administration (TIGTA) estimated in a report released Tuesday.
According to the report, the Trump-GOP tax law’s $10,000 cap on state and local deductions could prevent 10.9 million taxpayers from deducting over $320 billion in their tax filings.
See the full watchdog report here
The Hill reported more on Tuesday:
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Those who have claimed more than $10,000 in SALT deductions in the past may still be seeing a reduction in their tax liability under Trump’s tax law. Some taxpayers are likely to have their limit on SALT deductions more than offset by the 2017 tax law’s lower tax rates and larger child tax credit. And some taxpayers had their SALT deduction limited in the past by the alternative minimum tax but won’t be paying that tax under the new tax law.
However, in some cases, taxpayers are seeing an increase in their taxes largely because of the SALT deduction cap.
The SALT deduction cap is one of the most controversial parts of Trump’s 2017 tax law. Politicians on both sides of the aisle in high-tax states such as New York, New Jersey and California have been arguing that the cap disproportionately hurts their residents.
The tax scam is getting less popular
Tuesday’s watchdog report comes after it was reported earlier this month that millions of Americans – particularly those living in blue states – will receive a bill instead of a refund from the IRS.
As these changes hit taxpayers for the first time in 2019, there are signs that the Trump-GOP tax law is only getting less popular.
According to a poll taken this earlier month, opposition to the law is rising as Tax Day approaches, with a plurality of Democrats and Independents opposing it and only Republicans showing support.
During the 2018 midterms, Republicans hardly talked about their so-called tax reforms, the sole “accomplishment” of Trump’s first two years in the White House. As Politico noted last year, it turned out to be a political “bust.”
Now, for millions of Americans, it could be a financial bust that comes back to haunt Donald Trump and Republicans with 2020 on the horizon.
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Sean Colarossi currently resides in Cleveland, Ohio. He earned his Bachelor of Arts degree in Journalism from the University of Massachusetts Amherst and was an organizing fellow for both of President Obama’s presidential campaigns. He also worked with Planned Parenthood as an Affordable Care Act Outreach Organizer in 2014, helping northeast Ohio residents obtain health insurance coverage.
