Bill Ackman says that raising the state and local tax deduction—known as SALT—to $80,000 “makes no sense,” joining the debate over a contentious issue in President Joe Biden’s economic agenda.
“Why should low tax states subsidize high tax states? How can it makes sense to increase the deduction to $80k in the BBB at a cost of $275B?” the Pershing Square Capital Management founder said in a tweet, referencing the Build Back Better Act.
The House expanded the SALT deduction to $80,000 from $10,000 in its version of the bill, but Senate Democrats have said that would give the wealthy too large of a tax break and want to scale it back. The billionaire agrees, saying “I thought the BBB was to benefit the poor at the expense of rich.”
The SALT deduction is valuable in high-tax areas in the Northeast and West Coast. Many Democrats have sought to raise the cap ever since President Donald Trump limited the write off to $10,000 in his 2017 tax law.
This article was provided by Bloomberg News.