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>Companies get unlimited SALT deduction, and until this law, people did too. Exactly! Yup! The new limits to SALT don't hurt landlords...

• zaroth 8y ago
  This is because it would drive up rents, the costs would accrue fully to the [lower-income] people renting the property not to the landlord. It would be great to see renters get to deduct the property tax (up to $10k) that they pay intrinsically as part of their rent, but I doubt it will ever happen. The Fed is already not losing out when renters pay the property tax through their rent, rent is not deductible, so the Fed is getting all the income tax. The rental income is netted against expenses on the landlord side and any excess is taxed again at the landlords marginal rate. A dollar can be taxed again and again every time it changes hands. Usually every other time it changes hands there’s an opportunity to net out expenses before being taxed, otherwise taxes would completely swamp the economy. Company A sells Product A, proceeds of which pays Employee B, who pays rent to Landlord C, who buys Product D from Company D. In just that short sequence what percentage of the money flow went to taxes? Almost certainly well over 50%, perhaps approaching 70%, mostly borne by Employee B through payroll and income taxes, second by the Landlord C paying high marginal taxes on any rental profit, and lastly by the Employee and Landlord in the form of sales taxes. The Companies in this example do hand some dollars to the IRS and their States, but the dollars all actually come from B and C.