Washington, D.C. (January 29, 2021)— Congressional Democrats, especially those from high-tax states, are pushing to include a repeal of the state and local tax deduction (SALT) cap in the forthcoming Covid-19 relief legislation. This move would amount to a roughly $65 billion annual tax cut for the nation’s highest earners.
“After campaigning on raising taxes on the rich, Congressional Democrats are now proposing a major tax cut for millionaires and billionaires in the form of eliminating the SALT cap. This gift to their blue state donors is mere payback for their generous campaign contributions. While Democrats pretend that Trump’s tax cuts were for the rich, their proposal to eliminate the SALT cap would, indeed, overwhelmingly go to the top earners in the country. Eliminating the SALT cap would force taxpayers in red states to subsidize those from blue states, and it would make it far easier for state legislators in the latter to raise taxes on small businesses and the middle class. As Democrats reward their friends and cronies with a $65 billion tax cut, small businesses and ordinary Americans struggle. All Americans, no matter their political leanings, should be outraged at this brazen hypocrisy and self-dealing. Democrats have shown who their true constituents are.”
The Wall Street Journal published Alfredo’s op-ed on the SALT deduction in 2018. Read it HERE.