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A new study shows health disparities cost Texas billions of dollars; Senate rejects impeachment articles against Mayorkas, ending trial against Cabinet secretary; Iowa cuts historical rural school groups.

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Civil Rights activists say a court ruling could end the right to protest in three southern states, a federal judge lets January 6th lawsuits proceed against former President Trump and police arrest dozens at a Columbia University Gaza protest.

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Rural Wyoming needs more vocational teachers to sustain its workforce pipeline, Ohio environmental advocates fear harm from a proposal to open 40-thousand forest acres to fracking and rural communities build bike trail systems to promote nature, boost the economy.

Proposed Elimination of Middle Class Tax Exemption Draws Bipartisan Ire

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Monday, October 2, 2017   

RALEIGH, N.C. – Tax reform is now at the top of the agenda for Congress and the president.

Among the proposed policies on the chopping block is the elimination of a provision that allows homeowners to deduct state and local property taxes from their federal taxes.

The SALT deduction largely benefits the middle class, with nearly 87 percent of taxpayers who claim it having adjusted gross incomes of less than $200,000.

Andrew Koneschusky, a spokesman for Americans Against Double Taxation, explains the impact.

"If the deduction were to be removed, essentially more of their income would be exposed to federal taxation because you would be paying the full value of your federal taxes as well as your income taxes and your property taxes," he points out.

The National Association of Realtors estimates households with incomes between $50,000 and $200,000 would see an increase of $815 if SALT were eliminated.

A bipartisan collection of groups, including the National Sheriffs' Association, National Association of Counties and the International Association of Fire Fighters, are part of a coalition to preserve SALT.

While eliminating SALT will increase taxes for the middle class, the White House also is aiming to reduce the corporate tax rate from 35 percent to 20 percent. That move would reduce taxes for the wealthy.

Koneschusky says the SALT deduction is a tempting line item for lawmakers looking for ways to increase federal revenue.

"The SALT deduction, it's a large expenditure in the tax code and so it's something that could offset other cuts elsewhere, which is why it's being eyed," he points out.

City leaders are concerned the elimination of SALT will make it challenging for local municipalities to continue to tax to cover investments in infrastructure, public safety, education and others.






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