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.”