Democrats Again Consider Bailing Out the Wealthy with Billions in Tax Cuts

[mystery-ak]

Democrats Again Consider Bailing Out the Wealthy with Billions in Tax Cuts

John Binder 16 Jan 2021

Democrats are again considering legislation to provide their wealthy blue state donors with billions by ending the cap on a tax deduction.

As President-elect Joe Biden has released his $1.9 trillion Chinese coronavirus relief package that offers $1,400 stimulus checks to working and middle class Americans, rather than the $2,000 checks that President Trump had requested, Democrats are resurrecting their goal of providing tax breaks to the wealthiest of Americans, mostly concentrated in coastal blue states.

The plan once again being considered by Democrats on the House Ways and Means Committee would end the cap on the SALT tax deduction that was strictly limited by Trump in 2017. Ending the cap over the next two years would give millionaires and billionaires a massive windfall while costing about $136 billion.

more
https://www.breitbart.com/politics/2021/01/16/democrats-again-consider-bailing-out-the-wealthy-with-billions-in-tax-cuts/

[Hoodat]

Here's what the Brookings Institute says about it:

• Lifting the cap on the SALT deduction would massively favor the rich, with most of the benefit going to the top one percent
  
  
• Lifting the cap would in fact give almost three times as much, as a share of the cut, to the top one percent as the TCJA cuts did as a whole (of course the absolute amount is very much less)
  
  
• Even with the cap, the SALT deduction remains pro-rich, with around three-quarters of the benefit going to families in the top fifth of the income distribution

https://www.brookings.edu/blog/up-front/2020/09/04/the-salt-tax-deduction-is-a-handout-to-the-rich-it-should-be-eliminated-not-expanded/