The Corner

Economy & Business

Capping the SALT Deduction Was the Right Move

In response to SALT in the Wounds

As much as I admire the great Andrew Stuttaford, I disagree with him on the SALT deduction. In August, Joshua McCabe wrote a fine piece for NRO addressing the decision to curb it, which I recommend. Elsewhere, he’s touched on a neglected aspect of the SALT deduction: its role in entrenching policies that drive up housing costs. And high housing costs, lest we forget, are a chief driver of the leftward shift of younger voters on both sides of the Atlantic. If you believe as I do in a cost-of-living agenda for the Right, one focused on making a decent middle-class life more affordable for more Americans, capping the SALT deduction is a good first step. By limiting the tax subsidy for high-tax jurisdictions, it nudges voters at the state and local level to press for more sensible and sustainable policies and to reject fiscal profligacy, as we’ll see in the years to come.

Reihan Salam is executive editor of National Review and a National Review Institute policy fellow.

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