Posted by Anonymous
May 15, 2025
1 answer
Posted by Anonymous - May 15, 2025
That’s actually a good question, and I never thought much about it until my economics teacher brought it up in class. If they raise the salt deduction cap, people in high-tax, high-cost areas might suddenly be able to afford pricier houses, since they’d get a bigger tax break. That means more folks might be willing to pay ridiculous prices, driving the cost of houses up even more.
It’s weird, because the whole point was to help families with killer taxes, but if demand goes up, prices might just shoot up too! Some experts say that before the cap got put in, people could stretch their money more and bid up houses higher, especially in big cities. So, raising the cap could just make it even harder for new buyers or regular families to ever afford a home.
In my friend’s neighborhood, when the cap first kicked in, I remember people saying houses weren't getting as crazy expensive since buyers weren’t getting that big deduction. So who knows? It may help some people pay less in taxes but could leave even more people locked out of owning a home. Taxes can be such a mess, honestly!
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