Tax Relief

AOC calls on Democrats to demand tax relief for SALT: “A present to the billionaires”

Rep. Debbie Dingell on Rep. Lee Zeldin, Infrastructure Bill, Border Crisis

MP Alexandria Ocasio-Cortez targeted and accused some of her fellow Democrats this week for demanding that President Biden’s $ 2.3 trillion spending plan include a complete lifting of the cap on state and local tax deductions to fight for a determination, the “Gift to the Billionaires.”

“I don’t think we should take the infrastructure package hostage to 100% completely repeal SALT, especially in the event of a total repeal,” Ocasio-Cortez, DN.Y., told reporters Thursday. “I think we can talk about politics, but it’s an extreme position to be honest.”

PELOSI OPENS THE DOOR TO LIFT THE SALT CONTROL CAP IN BIDEN’S $ 2.25T OUTPUT BILL

Many Democrats from high-tax countries such as New York, New Jersey, and California have pushed for the $ 10,000 withdrawal cap imposed by Republicans when they passed the 2017 tax cuts. Their efforts picked up pace this week when a group of roughly non-partisan members of the House of Representatives linked the repeal directly to Biden’s planned infrastructure proposal.

The 30-member coalition threatened to withdraw support for tax law changes in the measure unless it also included a full restoration of the SALT deduction. Biden has called for the corporation tax rate to be increased from 21% to 28% and the minimum global tax rate paid by US companies to be increased to 21% to fund the multi-trillion dollar initiative.

With a slim majority of 218-212 in the House of Representatives, Democrats can risk losing the support of just a handful of members without jeopardizing the bill’s chances of passing.

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However, the abolition of the SALT cap would require Democrats to vote for policies that disproportionately benefit wealthy Americans living in blue states. Households that earn at least seven-digit amounts per year would receive the largest part of the benefits, according to the Joint Tax Committee.

“I think it’s just a giveaway for the rich,” said Ocasio-Cortez. “And I think it’s a gift to billionaires.”

The White House has welcomed feedback from lawmakers on how best to approach the infrastructure. This is generally seen as a bipartisan problem in Washington, but is not up to the idea of ​​lifting the SALT tax.

White House press secretary Jen Psaki said Thursday if lawmakers want to restore the SALT trigger it will have to find a way to pay for it.

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“It’s not an increase in sales, so it would add cost and potentially significant expense to a package,” she said. “There should be a discussion about how that’s paid for what is taken out instead. And then there is some kind of discussion about what’s most important to achieving our overall goals.”

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