Keller: Trump's "big, beautiful bill" could mean tax breaks for many in Massachusetts
The opinions expressed below are Jon Keller's, not those of WBZ, CBS News or Paramount Global.
Every member of the Massachusetts delegation is considered likely to vote against the huge Republican tax cut bill making it's way through Congress. But did you know that bill seems sure to include a large tax break for many local residents?
What is SALT?
Back in 2017 when President Trump signed off on a nearly $2 trillion tax cut bill, one class of taxpayers took a big hit. Previously, uncapped deductions of state and local taxes - or "SALT" - from your federal tax bill were suddenly capped at $10,000 a year. And Republicans from wealthy districts like Rep. Mike Lawler from suburban New York have been waiting ever since for their chance to lift that cap.
"We said very clearly that SALT had to be addressed," Lawler said amid meetings over the bill.
But if the SALT deal reportedly hammered out Wednesday holds and raises the cap to $40,000 for those earning up to $500,000, the work of these blue-state conservatives will be a windfall for some in the bluest state of all.
"Adjusting the SALT cap is a good thing for Massachusetts," said Doug Howgate, head of the Massachusetts Taxpayers Foundation.
"I think it'll be great for Massachusetts taxpayers," added veteran local tax attorney Dan Ryan of the firm Sullivan & Worcester.
Both experts hailed the tentative deal as long-awaited relief from the 2017 tax bite.
"It will benefit homeowners, especially people who live in wealthier towns with higher property taxes, and higher-income taxpayers," said Ryan.
Push for new corporate taxes in Massachusetts
To Howgate, it's "something that's gonna provide, I think, some relief to folks in Massachusetts and also mitigate against some impacts of tax policies like some impacts of the surtax."
That's a reference to the so-called Millionaire's Tax voters approved in 2022, the object of bitter complaints about a hostile tax climate from many of the same folks who now stand to pocket a fat tax cut if DC passes the SALT.
"That narrative still continues to some extent that the Millionaire's Tax has been too much of a burden on certain Massachusetts residents," said State Sen. Jamie Eldridge, Senate chair of the Joint Committee on Revenue. "And so this will certainly give a lot of those people a break."
At the same time, we're hearing dire warnings about cuts the so-called "big, beautiful bill" will make that will affect Massachusetts. Eldridge told WBZ-TV that pro-tax lobbyists, anticipating those cuts, are already talking about pushing for new corporate taxes, perhaps through another ballot question.
And with affluent taxpayers poised to pocket those SALT savings, that may bolster their case for asking them to pay more in other ways.
