The state and local taxes, or SALT deductions have a current cap of $10K that was put in place back in 2017 by former U.S. President Donald Trump's tax cuts.
Last Friday, Gov. JB Pritzker signed SB 2531, which allows small business owners across the state the ability to avoid the federal cap by changing the way they file with the IRS. This move could potentially save the small business owners thousands of dollars each year.
JB is happy to help businesses avoid federal taxes, but he screwed small businesses on lowering state income taxes. He is a self serving hog. Nothing more.
NB-Chicago
4 years ago
It’s my understanding most high-tax blue state have already passed some type of SALT cap workaround by now to offer a tax break to stop the well-to-do mostly lawyer, doctor, tax pass through entity set from fleeing to Florida. So now Illinois has has joined the list, surprised its taken so long. But how does SALT cap workaround/ tax break for the well-to-do fit in with progressive dem endless equity hustle talk? Correct me if I’m wrong, but it was always in the cards when JB was trying to push his ‘fair tax’ as an increased tax on well-to-do that… Read more »
Last edited 4 years ago by NB-Chicago
BB
4 years ago
JB is. a dope!
Riverbender
4 years ago
Despite Pritzker’s thinking that his rulings supersede the Constitution I doubt very seriously his ability to change the Interval Revenue Code, Regulations and pertinent rulings. Tread carefully on this and consult a competent tax advisor before following his lead.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
JB is happy to help businesses avoid federal taxes, but he screwed small businesses on lowering state income taxes. He is a self serving hog. Nothing more.
It’s my understanding most high-tax blue state have already passed some type of SALT cap workaround by now to offer a tax break to stop the well-to-do mostly lawyer, doctor, tax pass through entity set from fleeing to Florida. So now Illinois has has joined the list, surprised its taken so long. But how does SALT cap workaround/ tax break for the well-to-do fit in with progressive dem endless equity hustle talk? Correct me if I’m wrong, but it was always in the cards when JB was trying to push his ‘fair tax’ as an increased tax on well-to-do that… Read more »
JB is. a dope!
Despite Pritzker’s thinking that his rulings supersede the Constitution I doubt very seriously his ability to change the Interval Revenue Code, Regulations and pertinent rulings. Tread carefully on this and consult a competent tax advisor before following his lead.
I believe the IRS issued guidance that OKd this, which other states are doing, too. But, as you say, get competent tax advice.