Real Estate Agent · San Francisco · Member since 2018 · 42 posts · 13 votes
Democrats including Nancy Pelosi, Chuck Schumer, and Tom Suozzi are putting pressure on the current administration to repeal the controversial SALT (State and Local Tax) cap passed in the 2017 Tax Cuts and Jobs Act. Tom Suozzi has announced he will not cooperate in any tax reform without SALT reform (repeal). The repeal will primarily affect residents in California, New York, Texas, New Jersey, Maryland, Illinois, and Florida and move may give a boost to interest in high value properties.
Having a single tax bracket across the US doesn't make any sense. The cost of living expense depends on the region. When the median price of homes ranges vastly across the country (from $200k to $700k), the pay/income in those regions are accordingly adjusted. For the same job, individuals are paid differently in different parts of the US. Federal tax rates should consider a multiplication factor based on the cost of living for calculating tax. $100K income in Lousiana shouldn't be treated the same as $100K in NY or the SFO bay area.