Billionaire Tom Steyer may have taken hit from SALT cap in high-tax California
Billionaire activist and 2020 contender Tom Steyer may have taken a hit from the $10,000 cap on state and local tax (SALT) deductions, implemented as part of the Republicans’ Tax Cuts and Jobs Act.
According to nine years' worth of tax returns released by Steyer’s campaign on Thursday, he was able to deduct $181 million he paid in state and local taxes – his largest deduction, as first reported by Bloomberg.
Steyer and his wife Kat Taylor released returns for 2009 and 2017 – before the SALT cap was implemented. They could have owed the IRS more in 2018, especially considering the fact that the pair resides in California.
California is one of the high-tax states experiencing an outflow of residents looking to lower their tax obligations. The $10,000 cap is well below the average deduction claimed in California, which is $22,000, according to Kevin de Leon, a Democratic member of the California Senate.
Between 2009 and 2017 Steyer paid $405.3 million in federal and state taxes, at an average effective federal and state tax rate of 40.5 percent, according to his campaign.
Between 2009 and 2017, the billionaire and his wife earned $1.2 billion in total income. They also made more than $190 million worth of charitable contributions.
Steyer did not meet the qualifications for the third Democratic debate, which will be hosted by ABC and Univision next month. He is on track to qualify for the October debate.