https://thehill.com/policy/finance/474449-house-bill-to-temporarily-repeal-salt-deduction-cap-to-get-floor-voteHouse Democrats are pushing a floor vote on a bill to repeal the Tax Cut and Jobs Act's SALT deduction cap of $10,000 and make it unlimited again.
rather than voting to repeal the entire tax cut, they're only focused on the one tax hike portion that affected wealthy new yorkers / californians.
https://www.cbpp.org/research/federal-tax/repealing-salt-cap-would-be-regressive-and-proposed-offset-would-use-up-neededBased on the progressive CBPP's analysis, restoring the unlimited SALT deduction would give
96% of its benefits to the top 20% of tax filers, 56% to the top 1% of Americans alone, and essentially
zero benefit to anyone in the three quintiles, the whole middle class and poor. Making this perhaps the single most regressive and elitist tax bill proposal to increase wealth disparity in recent memory. Whereas the actual Trump tax cuts were progressive and gave a disproportionate amount of benefit to the middle class and less than their proportional tax burden to the top 20% / 1%, this democratic bill would
only benefit the rich and nobody else. But they did staple an inconsequential 37->39.6% top rate to it even though capital gains is what matters to these filers.
Of course the real story is that the SALT deductions were being used by California and New York to horde their taxpayer wealth into the state social services instead of sending it to the federal government. They could raise property taxes on millionaires, then let them deduct unlimited amounts from federal taxes, and the total tax burden stayed the same but a higher share went to their states. Which is precisely why the Republicans passed this SALT cap in the first place. So its actually doubly regressive, the Democrats want to keep rich states from having to give to poor states, while keeping rich people richer.
This post was edited by Goomshill on Dec 16 2019 01:10am