President Biden’s tax hikes face a new hurdle: House Democrats.
In a letter to House Leadership, a group of House Democrats made clear they’ll withhold support for the President’s plan unless and until it includes repeal of the cap on state and local tax (SALT) deductions claimed by high-income households.
Put another way, the group of House Democrats say they will support Biden’s $2 trillion tax hike on ordinary Americans only if it includes a big carveout for wealthy Americans.
Last week, JPMorgan Chase CEO Jamie Dimon slammed efforts to repeal the SALT deduction cap, saying that “over 80% of those deductions will accrue to people earning more than $339,000 a year.”
The nonpartisan Joint Committee on Taxation reports that households earning over $1 million would receive an average of $67,000 per year under Democrats’ SALT giveaway plan.
- New York House Democrats won’t support Biden’s $2 trillion tax hikes on blue-collar workers until they get a carveout for the wealthy in their state.
- New York, along with four other high-tax states, including California, Connecticut, Illinois, and New Jersey are all lobbying to repeal the SALT cap.
- According to the liberal Tax Policy Center, “most of the benefit” of the SALT deduction “goes to high-income households.”
- The far-left Center for American Progress has said that repealing the SALT cap “should not be a top priority.