Sen. Chuck Grassley (R-Iowa) today will offer an amendment to the Democrats’ partisan $4.2 trillion reckless spend and tax budget that would prevent the lifting of the State and Local Tax (SALT) Deduction cap as many Democrats have advocated, a move that would amount to a six-figure tax break for the wealthiest Americans mostly in blue states.
“My Democratic colleagues claim the wealthy are not paying their fair share, while at the same time would like to give millionaires six figure tax cuts. If Democrats are really concerned about the wealthiest Americans paying higher taxes, than they should have no problem supporting my amendment,” Grassley said. “This commonsense amendment will add language to ensure any so-called SALT cap relief doesn’t line the pockets of millionaires.”
The current budget resolution has a reserve fund purporting to protect taxpayers making less than $400,000 from tax hikes. Grassley’s amendment would add language to the reserve fund to prevent it from being used to make changes to the SALT deduction that would give tax cuts to the wealthy.
According to the liberal Tax Policy Center, the top one-tenth of one percent of households would receive an average tax cut of nearly $144,000. Furthermore, According to Joint Committee on Taxation, under a repeal or one year suspension of the SALT cap, over 50 percent of the tax benefit would go to those making over $1 million, while those with incomes under $50,000 wouldn’t see any benefit.
Related:
· Tax Policy Center: SALT Cap Repeal Would Overwhelmingly Benefit High Income Households
· Institute on Tax and Economic Policy: Not Worth Its SALT: Tax Cut Proposal Overwhelmingly Benefits Wealthy, White Households
· NBC: Black and Latino families could benefit less from state and local tax cap repeal
· The Hill: Left-leaning group: SALT cap repeal would worsen racial income disparities
· Brookings: The SALT tax deduction is a handout to the rich. It should be eliminated not expanded
· Tax Foundatin: Relaxing State and Local Tax Deduction Cap Would Make Tax Code Less Progressive
Original source can be found here.
