Drew Johnson, a former candidate for Nevada’s 3rd Congressional District, said expanding the state and local tax (SALT) deduction unfairly rewards high-tax states while penalizing taxpayers in fiscally responsible ones.
“Increasing the federal deduction on state and local taxes (SALT deduction) is an idiotic bailout to states plagued by high taxes and irresponsible spending,” said Johnson, Congress Nominee. “It’s not the job of taxpayers in states like Nevada to subsidize the irresponsible decisions of state lawmakers in CA & MD. It’s time to UNSALT America’s tax code. It makes no economic sense to favor the wealthy in high-tax states.”
Congressional debates surrounding the SALT deduction cap have highlighted significant partisan divisions. The $10,000 cap, introduced by the 2017 Tax Cuts and Jobs Act, is perceived by Democrats and some Republicans from states such as California and New York as detrimental to their constituents. A Republican-led proposal to increase the cap to $30,000 for certain income brackets has garnered support from moderates but faces resistance from deficit-focused lawmakers. According to The Washington Post, this internal disagreement has complicated efforts to advance broader tax legislation.
A 2023 report by the Bipartisan Policy Center indicates that average SALT deductions are highest in states with elevated tax burdens and wealthier residents. In California, itemizing taxpayers claimed an average SALT deduction of $8,894; in Maryland, the average was $9,155; and in New York, it reached $9,085. These figures fall just below the federal cap of $10,000, illustrating the policy’s pronounced impact on high-income households in these regions.
The Tax Policy Center reports that the 2017 SALT cap resulted in a shift in federal tax liabilities. High-income households in high-tax states experienced significant increases in their federal tax bills. Taxpayers in states like New York and California saw notable rises in their average federal taxes, whereas those in low-tax states like Nevada faced minimal changes. The cap also reduced the proportion of itemized returns nationally, prompting many filers to choose the standard deduction instead.
Johnson is a Republican policy analyst known for advocating limited government and tax reform. His campaign website notes his founding of the Tennessee Center for Policy Research and subsequent work with organizations such as the National Taxpayers Union and Taxpayers Protection Alliance. As the 2024 Republican nominee for Nevada’s 3rd congressional district, Johnson campaigned on reducing federal spending and eliminating what he describes as “unfair” tax burdens.