Shaker Heights, like other cities, has had significant reductions in income from the state level over the several years, and had to adjust to the loss of the estate tax. Shaker has worked hard to reduce our costs to deliver services and unfortunately, had to increase income taxes to successfully stabilize local finances in 2012.
Now, especially in cities like a Shaker Heights, a new threat could impact our ability to fund the services we most rely on day to day: the elimination of the state and local tax deduction (SALT). The ability to deduct local and state taxes from federal returns makes a big impact on many Shaker residents' taxes each year, and allows cities to fund essential services without 'double taxing' the same income. This deduction, along with mortgage interest deduction, make a big difference for middle class tax filers.
As you read this, the SALT deduction is in danger of being eliminated by Congress to help pay for misguided tax cuts for corporations and as part of a series of changes that further limit the local control of cities.