Well, yes and no. People in NYC, for example, right now always itemize down to about 75k in income just on the basis of SALT. This does nothing for the people in the lower end of that group but is helpful for people around 300k or so (it also favors older people over younger ones since it's really all about whether you have a mortgage or not, but that's more of a feature of the mortgage deduction that has knock-on consequences here).
Well, if we go with NYC I agree that a single person with AGI of slightly below 100K would dip into itemized deductions just based on SALT (no mortgage as it is unlikely someone with 100K can afford to buy a home/condo in NYC.) But under this plan the standard deduction surges to 12K which means you have to go up to nearly 150K to have SALT near standard deduction (again 150K income most likely will not allow someone to buy a home.) But even in this case due to lower rates this taxpayer still pays less in taxes. And even if we allow for SALT deductions to be allowed up to 10K under this GOP compromise plan it would still not help get it past the standard deductions of 12K unless charities is fairly high.
Of course I agree with you, this compromise helps at the marginal level for people more above 250K especially if they have a significant mortgage payment. In NYC you will have to be at around 250K to be able to buy a reasonable condo or house. But for incomes above 500K this does not help again as people with income above 500K will most likely have real estate taxes above 10K making this compromise not helpful.
So this idea is an idea for people in the 250K-500K range living in a high tax area (NYC, CA, NJ etc etc)
There are many homeowners in NYC with incomes in the $100,000 range with a mortgage....
Sure. I agree if there are homeowners with mortgages in NYC with income 100K AND are single then yes they do benefit under this compromise. My impression is that that are not a lot of them (I agree there are some 100K married households in NYC that own a home) but I can for sure be wrong about that.
