Democrats rarely support tax cuts, right? After all, Biden’s latest plan would raise taxes on businesses and wealthy Americans.
They even complained that Trump’s tax cuts (which brought jobs and higher wages) made America’s spending deficit worse.
But, believe it or not, it looks like Democrats, led by Nancy Pelosi, do love handing out tax cuts.
Not to regular folks like you or me. But to blue states loaded with rich liberals.
A new report just outed what is really going on. From Fox Business:
Some Democrats are pushing President Biden to eliminate or relax the $10,000 cap on state and local tax deductions, but a new analysis shows that the changes proposed so far will largely benefit earners on the higher end of the income spectrum…
Repealing the cap entirely favors those in the top 1% — with an expected 2.8% boost to the after-tax income of this group.
Democrats like Nancy Pelosi are lobbying to eliminate the SALT tax cap on state and local taxes. That would result in rich folks, primarily living in blue states, getting a tax break.
What is the SALT cap? Before Trump slashed taxes for all Americans, rich people were able pay less in federal taxes if they lived in high-tax states like California and New York.
Trump set a cap on that little loophole so rich Democrats would have to pay their federal taxes.
With Biden looking to raise taxes, Democrats want to restore the deductions rich liberal states were able to enjoy. By eliminating the SALT cap or even lessening it, rich liberals will be able to pay fewer taxes overall.
So… how is Biden going to pay for all his trillions of handouts, if rich blue states are getting tax breaks?
And why is it always rich people in blue states—the friends and donors of folks like Pelosi—always getting the breaks?
Biden claims he’s trying to help working-class and middle-class Americans. Doesn’t look that way.
If they are successful at eliminating the SALT cap, then rich Democrats will be paying taxes to their liberal state, but not the federal government.
That makes even less sense, in Biden’s strategy. Because it means he’ll be forced to tax the rest of us more.
Do you think Democrats are trying to help all Americans, or just special interests?
- Democrats are pushing to remove SALT caps, which would benefit the rich in blue states.
- These caps prevent rich citizens that live in high-tax states from paying less federal tax.
- This seems to contradict what Biden promised, to raise taxes on wealthy Americans.
Source: Fox Business