Bloomberg: Democrats Prioritize Wealthy Over Working Families with SALT Giveaway
Analysis shows SALT cap still gives biggest tax cut to highest earners
Nov. 17, 2021 - Blog - Press Releases - Select Revenue Measures
New analysis for Bloomberg shows that “…as a result of its $80,000 SALT cap, the House reconciliation bill would ultimately give a tax cut to most of the top 1 percent, according to an estimate released Nov. 11 by the Tax Policy Center."
“Americans with six-figure salaries and high property and state income tax bills will see the most noticeable effects from lifting the $10,000 SALT cap, according to an analysis by accounting firm Marcum conducted for Bloomberg News".
In the analysis, a married couple living in blue-state New York suburbs earning $400,000 would save almost $12,000 - lowering their tax rate by 3 points. A similar married couple earning $150,000 would only save around $2,000 in a SALT windfall under Democrats’ bill - lowering their tax rate by 1 percentage point.
Under Democrats’ proposal, the occupants of the penthouse get a tax cut while the building janitor is left behind.
KEY TAKEAWAYS:
* The liberal Institute of Taxation on Economic Policy (ITEP) estimates that 85 percent of the tax cuts from the repeal of the SALT cap would go to the richest 5 percent of taxpayers, mostly in high-tax states like New York and California.
* Two out of every three millionaires gets a huge tax cut under this bill, and it’s the second most expensive item in the Democrats’ tax-and-spend bill.
* The Committee for a Responsible Budget found that the SALT carveout would be nearly 50 times larger than the expanded child tax credits for a typical family over five years.
* The 90 percent of middle-class American taxpayers who don’t itemize their taxes get nothing from the SALT cap repeal. Meanwhile, Democrats are hiking taxes on 20-30 percent of middle-income earners according to analysis from the liberal Tax Policy Center.
READ: REPORT: Second-Most Expensive Provision in Dems’ Tax-and-Spend Bill Hands Billions to Rich
