Trump's SALT Change Creates Unexpected Tax Penalty | JQJO

President Trump's revised SALT deduction creates a high tax rate for those earning between $500,000 and $600,000 in 2025. This 'SALT torpedo' results in a 45.5% federal tax rate on income within this bracket. Financial experts advise high-income earners to consider strategies like switching to ETFs from mutual funds, utilizing pre-tax 401(k) contributions, and avoiding large capital gains to mitigate the tax penalty before the year's end.