Gee argues federal $40K tax write-off favors wealthy WA homeowners
Jul 23, 2025, 5:23 AM
As part of President Donald Trump’s “big, beautiful bill,” the federal cap on state and local taxes (SALT) has been raised from $10,000 to $40,000, Realtor.com reported. The online real estate marketplace noted that 16.8% of Seattle homeowners and 9.4% of Washington homeowners exceeded the previous $10,000 SALT deduction cap.
“That actually is a big deal for a state like ours, where we don’t pay income tax, but we do pay huge property taxes,” KIRO host Ursula Reutin said on “The Gee and Ursula Show” Tuesday.
However, Ursula pointed out critics believe the change still favors higher-income earners and doesn’t fix the problem of affordability.
KIRO host Gee Scott agreed with critics, saying, “Once again, this highlights the rich get richer.”
Only 0.8% of Washington homeowners will exceed new SALT limit
With the new cap, only 0.8% of Washington homeowners will exceed the limit, providing major tax relief and potentially thousands of dollars back in the pockets of qualifying homeowners, according to Realtor.com.
“If you have been hit hard by property taxes in King County, let’s say, in particular, this new SALT deduction cap might give you some breathing room,” Ursula said.
Gee cited Washington State Budget and Policy Center Executive Director Eli Taylor Goss’ point, reported by The Seattle Times, that more Washington residents would benefit from the higher deduction cap if the state had an income tax.
“This is really for a minority of people here in the state,” Gee added. “This really highlights, once again, people that are high earners, people here that have access to be able to itemize tax deductions, more so than those in the lower class, as far as income is concerned.”
Ursula responded, “This does help homeowners with the large mortgages, those who bought during the housing boom, and as you pointed out, those folks who already itemize and already have higher tax burdens, this would be helpful.”
Listen to the full conversation below.
Listen to Gee and Ursula on “The Gee and Ursula Show” weekday mornings from 9 am to 12 pm on KIRO Newsradio.
