The days of the Democrat party representing the working American are long gone. A recent item in the Build Back Better Bill illustrates where the Democrat party’s priorities truly lie. The Epoch Times posted an article today about the tax cut for the rich included in the bill.
The article reports:
President Joe Biden repeatedly said he would raise taxes only on the rich to pay for his Build Back Better plan, but now he’s backing a tax break for millionaires and billionaires, contradicting his past promises.
While the White House calls it a “compromise” to move the president’s agenda forward, this is a big deal, according to critics, as Biden and Democrats will likely face a messaging problem heading into 2022 elections.
House Democrats on Nov. 19 passed Biden’s nearly $2 trillion social and climate spending plan. The bill, called the Build Back Better Act, contains a wide variety of tax provisions, including an increased federal deduction for state and local taxes, or SALT.
The plan allows taxpayers to deduct up to $80,000 of state and local taxes against their federal income taxes, a sharp increase from the current $10,000 cap. This means many among the rich would pay lower federal income taxes than they currently pay.
President Donald Trump’s 2017 Tax Cuts and Jobs Act limited individual’s deduction for SALT payments to $10,000 a year. This cap on deductions, the studies showed, has increased the tax bill for residents of high-tax states, especially those who earn more than $500,000.
Blue states with higher individual income and property tax rates, such as New York, New Jersey, and California, objected to the cap imposed under 2017 tax overhaul, saying that it’s unfair to their residents. Since the passage of tax reform, they’ve tried various tax maneuvers to avoid this limitation.
Critics on both sides of the aisle, however, have said for years that eliminating or raising the SALT deduction cap would be a handout to the rich.
Under the House plan, roughly a third of the tax benefits would go to the richest 1 percent and three-quarters would go to the richest 5 percent, according to an analysis by the left-leaning Institute on Taxation and Economic Policy.
Another analysis by the right-leaning Tax Foundation found that “the top 1 percent of earners would experience a 0.8 percent increase in after-tax income in 2022 due to a more generous SALT deduction.”
Pay attention, Democrats–you have been hoodwinked by your own party. The Trump tax cuts actually helped those in the middle class. The Biden tax cuts are tax cuts for the rich. It’s a pretty safe bet that no one in the middle class in paying $80,000 in state and local taxes, although California may be looking for a way to make that happen.