Dems Demanding SALT Tax Cuts Stand to Benefit

Link: https://www.dailyposter.com/democrats-gunning-to-end-salt-cap-stand-to-benefit/

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The SALT tax deduction allows state and local taxes like property taxes to be deducted from federal taxes. The deduction is particularly beneficial to wealthy property owners in Democratic states, which typically have higher property tax rates. In 2017, the deduction was capped at $10,000 under President Trump’s tax reform bill, in what many saw as a Republican attack on blue states.

Repealing the SALT cap would cost the government $600 billion in revenue over nine years.  That outlay would essentially negate any financial benefits from  the Democrats’ proposal to raise the corporate tax rate from 21 percent to 25 percent, the party’s preferred alternative to Biden’s proposed 28-percent corporate tax rate. With all of the money from raising the tax rate being funneled back to wealthy homeowners, there would likely be little money left to fund Biden’s infrastructure package.

Author(s): EMMA RINDLISBACHER

Publication Date: 11 May 2021

Publication Site: Daily Poster

Bernie Sanders Is (Mostly) Right About the SALT Deduction

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“I want to tell you this: If I become majority leader, one of the first things I will do is we will eliminate it forever,” Schumer said during a July 14 press conference on Long Island. “It will be dead, gone, and buried.”

“It” in this case was the cap on the state and local tax (SALT) deduction, which was imposed as part of the 2017 federal tax reform bill passed by Republicans and signed by President Donald Trump. As a result of that law, Americans are allowed to deduct a maximum of $10,000 in state and local tax payments from their federally taxable income; previously the deduction was uncapped, and it overwhelmingly benefitted the richest households while shifting their federal tax burden to everyone else.

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Sen. Bernie Sanders (I–Vt.) is correct to point out, as he did in an interview with Axios this week, that the SALT cap creates a serious optics problem for Democrats. Sanders says he will oppose Schumer’s effort to attach the SALT cap repeal to the transportation bill because “it sends a terrible, terrible message when you have Republicans telling us that this is a tax break for the rich.”

Author(s): Eric Boehm

Publication Date: 11 May 2021

Publication Site: Reason

Dem tax rift: Sanders rips Pelosi, Schumer for backing repeal of SALT cap

Link: https://nypost.com/2021/05/10/sanders-rips-pelosi-schumer-for-backing-repeal-of-salt-cap/

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​Sen. Bernie Sanders is taking on the leaders of his own Democratic Party — Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi — for supporting a repeal of the cap on deductions for state and local tax on federal income taxes.

Pelosi (D-Calif.) and Schumer (D-NY) — who represent two of the highest tax states — back repealing the $10,000 cap instituted by former President Donald Trump on SALT deductions, which Sanders said “sends a terrible, terrible message” to working-class people.

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“We could reverse that for 2018 and 2019 so that people could refile their taxes” and get a refund, Pelosi told The Times in March. “They’d have more disposable income, which is the lifeblood of our economy, a consumer economy that we are.”

Author(s): Mark Moore

Publication Date: 10 May 2021

Publication Site: NY Post

The Heroic Congressional Fight to Save the Rich

Link: https://taibbi.substack.com/p/the-heroic-congressional-fight-to

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However, the SALT cap didn’t so much go after “Democrats” as “affluent Democrats.” It only applied to people who itemize their taxes, which meant the 90% of Americans who take the standard deduction were unaffected. The deduction raised over $70 billion in just the first year, and roughly 56% of that money came just from the top 1% of taxpayers, living in a few states in particular.

The tax nastygram seemed directed at Trump’s hometown delegation. Congresswoman Carolyn Maloney in April of 2017 complained about the cost of protecting “Trump and his family here in NYC”; the SALT cap affected 19% of Maloney’s constituents in Brooklyn and on the Upper East Side, and taxpayers in that 19% each lost an average of $100,405 in breaks. Chuck Schumer, one of Trump’s fiercest critics, personally took over $58,000 in SALT deductions just in 2016.

Overall, 39 of the 40 districts most affected by the SALT cap were represented by Democrats. Of those, 28 came from New York, New Jersey, and Connecticut. Also affected: Nancy Pelosi’s San Francisco district, where residents lost an average of $53,471 of write-offs. Trump’s campaign promises to take on “elites” proved phony, except when he was able to effect this targeted partisan strike at the people he knew and hated the most: rich, socially liberal Democrats, especially ones from the tri-state area.

Author(s): Matt Taibbi

Publication Date: 23 April 2021

Publication Site: TK News at substack

New York business leaders push Biden, Schumer to ditch the cap on SALT deductions

Link: https://www.cnbc.com/2021/03/29/new-york-business-leaders-push-biden-schumer-to-remove-cap-on-salt-deductions.html

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Leaders of the finance industry and other businesses in New York are pushing President Joe Biden and Senate Majority Leader Chuck Schumer to bring back the full state and local tax deduction.

Schumer, who is up for reelection in 2022, has heard from business leaders across New York on multiple calls in recent weeks. Some of these people have also held talks with advisors to Biden.

The so-called SALT deduction was capped at $10,000 by former President Donald Trump’s tax reform bill, which became law in late 2017.

Author(s): Brian Schwartz

Publication Date: 29 March 2021

Publication Site: CNBC

Schumer spokesman: Federal pandemic relief eliminates NYS deficit

Link: https://nypost.com/2021/03/08/schumer-federal-pandemic-relief-eliminates-nys-deficit/

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The $1.9 trillion COVID-19 relief package passed by the US Senate wipes out New York State’s projected budget deficit — possibly negating the need for hefty tax hikes or spending cuts, Senate Majority Leader Chuck Schumer’s office said Monday.

“Ok. Thanks to @SenSchumer NYS budget deficit for this year is…..Zero, nada, niete, zilch (NY terms),” Schumer spokesman Angelo Roefaro tweeted.

The American Rescue Plan provides state government coffers with $12.6 billion in unrestricted aid, a measure championed by Schumer, the New York senior senator. The measure passed the Senate in a 50-49 vote and is expected to clear the Democratic-led House of Representatives on Tuesday and delivered to President Biden for approval.

Author(s): Carl Campanile, Bernadette Hogan

Publication Date: 8 March 2021

Publication Site: NY Post

Schumer spokesman: Federal pandemic relief eliminates NYS deficit

Link: https://nypost.com/2021/03/08/schumer-federal-pandemic-relief-eliminates-nys-deficit/

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The American Rescue Plan provides state government coffers with $12.6 billion in unrestricted aid, a measure championed by Schumer, the New York senior senator. The measure passed the Senate in a 50-49 vote and is expected to clear the Democratic-led House of Representatives on Tuesday and delivered to President Biden for approval.

Asked if the geyser of pandemic relief eliminates the needs for tax hikes or spending cuts, Roefaro told The Post, “the statement speaks for itself.”

Roefaro continued, “How NY decides its budgetary policy is a matter for the state legislature and the administration. Our job was to deliver resources to help NY confront and overcome Covid and it’s impacts, including the fiscal impact. And we did that fully and completely.”

Author(s): Carl Campanile, Bernadette Hogan

Publication Date: 8 March 2021

Publication Site: NY Post