Jim Jordan Is Trying To Buy the Speakership With Tax Breaks for Wealthy Residents of Blue StatesIt's a maneuver that makes little fiscal, philosophical, or political sense, but thankfully it also seems unlikely to work.
ERIC BOEHM
10.20.2023
After failing in two attempts to become Speaker of the House of Representatives, Rep. Jim Jordan (R–Ohio) has reportedly offered an unexpected bargaining chip: a big tax break for wealthy Americans living predominantly in high-tax, Democratic-controlled states.
We'll soon find out whether that makes any difference: Jordan is expected to make a third attempt at securing the speakership on Friday.
Jordan is "on board" with increasing the $10,000 cap on state and local tax deductions if it will secure support for his speakership bid from some hold-out Republicans who also favor lifting or abolishing that cap, Roll Call reports. If it works out, Jordan's proposal would see the so-called "SALT cap"—shorthand for "state and local tax"—doubled to $20,000 for single tax filers and $40,000 for married couples who file taxes jointly. It is, as The Wall Street Journal notes, an obvious attempt to curry favor with Republican lawmakers from blue states like New York.
"It would be a notable endorsement from Jordan, who has led some of the House's most conservative factions that tend to oppose allowing more deductions for state and local taxes," is how Roll Call's Laura Weiss frames the surprising maneuver.
That's putting it mildly. By even putting that deal on the table, Jordan has signaled that he's willing to sell out major Republican fiscal and tax policy accomplishments to advance his career. That's not a good sign (though it would be very much in keeping with Jordan's status as the avatar for a Republican Party that increasingly has little interest in policy making or traditionally conservative principles).
It might be tempting for some libertarians to support a higher SALT cap, simply because it means larger deductions—and therefore lower taxes—for some Americans. Hey, isn't letting people keep more of their own money always a good thing?
Yes, but that's the wrong way to think about the SALT cap. If Congress felt that individuals making $100,000 (or pick any other number you'd like) ought to be paying less in taxes, it should make that the law of the land. The federal tax code should treat all federal taxpayers equally, and that means being agnostic about how much taxpayers might owe in state and local taxes. Doing otherwise is fundamentally unfair: Why should a person earning $80,000 (or, again, pick any number you'd like) in Connecticut get a tax break that isn't available to someone making the same amount of money in Florida?
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Source:
https://reason.com/2023/10/20/jim-jordan-is-trying-to-buy-the-speakership-with-tax-breaks-for-wealthy-residents-of-blue-states/Yeah, he's such a fiscally responsible conservative.
