WaPo: Dems’ SALT Tax Break for the Wealthy is “Unseemly”
As Democrats push crippling tax hikes on Main Street businesses and Middle-Class families, they are fighting for a tax shelter for wealthy Americans. “It would be unseemly to argue that we lucky few deserve a special tax break for making a lot of money and spending it on things we value. Sadly, that clearly won’t stop Democrats from trying,” Megan McArdle observes in an op-ed for the Washington Post:
“According to Maya MacGuineas of the Committee for a Responsible Federal Budget, households in the top 0.1 percent of earners would receive an average benefit of about $150,000, while those in the middle would get closer to $15. Repealing the caps would cost about $350 billion by 2026, and an estimated 85 percent of that revenue would end up in the pockets of the richest 5 percent of Americans.
“You can probably think of many better uses of taxpayer money than giving a tax break to the most affluent people in the most affluent parts of the most affluent states in the country.”
CLICK HERE to read the full article.
Democrats are planning on repealing the $10,000 SALT cap before the reconciliation bill heads to the House floor.
- Most of the repeal – which could cost up to $440 billion – goes to cut taxes for individuals making more than $1 million a year.
- None 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.
- Repealing the cap gives a green light to blue-state governors and mayors to raise state and local taxes even brutally higher on families and businesses.
READ: Democrats’ Fight to Preserve Tax Break for Wealthy Will Squeeze Charities and Your Retirement
Democrats’ tax increases hit Main Street businesses and middle-class families’ pocketbooks to offset the subsidies that they offer to the wealthy.
- Both the left-leaning Tax Policy Center and the non-partisan Joint Committee on Taxation (JCT) agree working families will see their taxes go up.
- According to the Tax Policy Center, President Biden’s tax plan will raise taxes on 75 percent of middle-class families next year, rising to 95 percent of middle-class families over the long term – contradicting his pledge not to raise taxes on middle-class Americans.
- The JCT analysis shows that more than two thirds of the corporate tax burden would be borne by lower- and middle-income taxpayers, and 172 million taxpayers would bear the burden of the increased corporate tax rate – and disproportionately harm U.S. workers, retirees, and small businesses.
READ: Democrats’ Repeal of SALT Cap Would Widen Income Inequality