Noting that Democrats are “embracing the very same budget gimmicks they had previously derided,” the New York Times reports that “Democrats are employing their own maneuvers to downplay the cost of their bill” despite claims the bill “will be fully paid for with an estimated $2 trillion in tax increases on corporations and high earners.”
Democrats are hiding cost of up to $4 trillion using gimmicks…
- “[B]udget experts, along with some moderate Democrats, say the true cost of the legislation will be closer to $4 trillion because of the way the programs are structured and accounted for in the budgetary process.”
- “For instance, many of the provisions in Mr. Biden’s framework would expire, or “sunset” after only few years, even though Democrats anticipate that they would eventually be extended.”
- “The Center for a Responsible Federal Budget, a fiscal watchdog group, suggested that the true cost of the legislation Democrats are crafting could be around $4 trillion given the number of expiring programs.”
… to pay for SALT tax shelter that has penthouse occupants cheering while the building janitors get nothing
- The New York Times writes: “Senator Robert Menendez, a New Jersey Democrat … said this week that it should be targeted to benefit the middle class but not reinstated. ‘Such “gimmicks,” he warned, would mostly benefit the rich.’”
- Democrats increased the $10,000 SALT cap to $72,500, providing wealthy taxpayers with tens of thousands of dollars per year in tax benefits. The average middle-class household gets just $15.
- None of the benefit goes to the 90 percent of Americans who don’t itemize their taxes, so occupants of the penthouse cheer while the building janitor gets nothing.
- SALT cap expansion also gives a green light to blue-state governors and mayors to raise state and local taxes even brutally higher on families and businesses.
… that will add to the deficit
- “The Treasury Department said on Thursday that the legislation would ‘generate net deficit reduction’ by raising taxes on big companies and wealthy Americans. However, the Penn Wharton Budget Model released on Thursday found the overall cost of the House Democrats’ bill is not fully covered by tax increases and said it would be a slight drag on economic growth in the long term.”
- Speaker Pelosi who previously decried voting on any legislation without a budgetary score has pressed ahead without one on legislation Democrats have described as “transforming the American economy.”