Tax Plan Inflames Democratic Debate
House Democrats are in a fresh revolt over SALT.
It’s a fine (hypocritic) time for it given they all voted for the Build Back Better build.
BBB is now in the hands of the Senate where an Inflamed Discussion is taking place.
House passage of Democrats’ $2 trillion education, healthcare and climate package has inflamed an intraparty debate about whether the bill gives overly-generous tax benefits to high-income Americans.
At the center of the dispute is the House plan to raise the $10,000 cap on the deduction for state and local taxes to $80,000 through 2030. A small but committed group of lawmakers from high-tax states like New York and New Jersey have for years insisted on repealing the $10,000 cap, which Republicans put into place as part of the 2017 tax law.
“I think it’s bad politics, it’s bad policy,” Sen. Bernie Sanders (I., Vt.) said to reporters. “The Democrats correctly have campaigned on the understanding that amidst massive income and wealth inequality, we’ve got to demand that the wealthy start paying their fair share of taxes, not give them more tax breaks.”
Setting the tax-deduction cap at $80,000 without an income limit means that its benefit goes to even the highest-income households, who all would save $25,900 more in taxes than they do under current law. Nearly one-third of the benefit of that $80,000 cap would go to the top 1% of households, according to the Tax Policy Center.
The inclusion of the higher state and local tax deduction, or SALT, cap means the bill overall would provide a net tax cut to many wealthy households. According to the congressional Joint Committee on Taxation, more than two-thirds of households with income over $1 million would get a tax cut in 2022.
The only Democrat non-hypocrite in the House (on this issue) is Rep. Jared Golden of Maine.
Golden voted against BBB, criticizing its “tax giveaways to millionaires.”
Lie of the Day
In the lie of the day, Pelosi presented this feeble excuse “This isn’t about who gets a tax cut, it’s about which states get the revenue that they need in order to meet the needs of the people, and that is a fight that I will continue to make.”
Pelosi was a late supporter of the break for millionaires when she discovered she needed votes of Democrats in NY and NJ to pass BBB.
Senator Michael Bennett Chimes In
Senator Bennett is a Democrat from Colorado.
Question of the Day
Ok Bernie where do you stand?