The Mercury News editorial (Editorial, Jan. 5) implied that losing deductibility for state and local taxes (SALT) would impact most California taxpayers (“More than 80 percent of California tax filers who itemize exceeded the $10,000 cap in 2015.”). While factual, it is somewhat misleading. Only 34.5 percent of Californians itemize, so about 25 percent of California filers would be affected.
The average total SALT deduction exceeds the cap beginning with filers in the $75,000-$100,000 income range, who averaged $11,102 in SALT deductions. Using new tax rates, they would pay about $250 more under the 2018 law. The most affected taxpayers earn $200,000 or more. Their average SALT deduction totaled almost $72,000. Their tax bills will increase by about $21,500.
It’s interesting seeing California politicians inventing ways of preserving SALT deductibility for these high income taxpayers, the same taxpayers that Sacramento routinely looks to for funding the progressive dream state. I guess they’re trying to protect the geese.
Pat Waite
San Jose
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