Rachel Snyderman

So far this tax season, refunds have been trending higher.

Rachel Snyderman is Managing Director of Economic Policy at the Bipartisan Policy Center.

And one reason for those bigger refunds changes to the state and local tax deduction, or SALT deduction.

It used to be taxpayers could only write off $10,000 of their state and local taxes when calculating their federal taxes, but the One Big Beautiful Bill Act boosted that to $40,000, with some limits.

So for folks who file this year...

Garrett Watson is director of policy analysis at the Tax Foundation.

And those filers tend to have higher incomes.

Tim Simons is the founder of the Simons Group Tax Advisory in the D.C.

area.

Simons mainly works with higher income clients and says many of them are getting bigger than usual refund checks thanks to the increased SALT deduction.

But those bigger refunds come at a cost.

According to the Bipartisan Policy Center, their estimated budget impact is about $140 billion over the next decade.

In Washington, I'm Kimberly Adams for Marketplace.

This is Planet Money from NPR.

This is Planet Money from NPR.

This is Planet Money from NPR.

Well, the distinction with Nixon is also the frequency and the scope at which he impounded funds. I mean, in 1973, he impounded nearly one third of all discretionary spending.

Well, the distinction with Nixon is also the frequency and the scope at which he impounded funds. I mean, in 1973, he impounded nearly one third of all discretionary spending.

Well, the distinction with Nixon is also the frequency and the scope at which he impounded funds. I mean, in 1973, he impounded nearly one third of all discretionary spending.

And really refresher of, you know, what are the real checks and balances when it comes to the federal budget process as we head into a very busy year for fiscal policy and, of course, a new administration.