Sanders: Proposed repeal of the SALT five-year limit ‘beyond the unacceptable’

Chairman of the Senate Budget Committee Bernie sandersBernie Sanders Sanders Responds to Manchin Spending Concerns Manchin frustrates Democrats with the latest outburst of the Democratic race to reach an agreement on the price of prescription drugs MORE (I-Vt.) He fired a warning shot Tuesday at the five-year repeal of the state and local tax deduction (SALT) limit that Democrats are considering including in their social and climate spending bill.

Democrats are considering repealing the Trump-era $ 10,000 cap through 2025, but Sanders, in a statement, called the move “beyond unacceptable.”

“At a time of massive income and wealth inequality, the last thing we should do is give more tax breaks to the very rich. Democrats campaigned and won on an agenda that demands that the very rich finally pay their fair share, not a fair share. that gives them more tax breaks, “Sanders said.

“I am open to a compromise approach that protects the middle class in high-tax states. I will not support more tax breaks for billionaires,” he added.

Sanders’ red line is significant because Democrats need all 50 members of their Senate caucus to support the bill in order to pass it under budget rules that allow them to avoid Republican obstructionism. That empowers any individual member to demand changes or provisions that are removed entirely.

Changes to the SALT deduction limit are a top priority for Democrats in high-tax states like New York and New Jersey, who are concerned that, as currently structured, it will unfairly target their constituents, with Rep. Josh gottheimerJoshua (Josh) Gottheimer Democrats call for the IRS bank reporting proposal to be removed from the Podemos spending bill and we will meet the climate test in the Build Back Better Act 5 sticking points holding back the spending package of the Democrats MORE (DN.J.) saying earlier Tuesday that a lifting of the deduction cap “will be in the final legislative package.”

But lifting the SALT cap has drawn rejection from progressives who worry it will give the wealthiest Americans a tax break.

Sanders, in his statement, argued that the proposal under discussion among House Democrats would mean that “the top 1% would pay lower taxes after the approval of the Build Back Better plan than after Trump’s tax cut in 2017. This is more than unacceptable. “

Sanders had previously signaled an opening to adjust the deduction limit, but the proposal currently being discussed among Democrats would effectively suspend the SALT limit entirely until 2026.

Sanders, speaking to reporters Tuesday night, suggested he wanted to place income restrictions on who could qualify for the SALT limit deduction waiver. Manchin said he and his staff were considering an income restriction in excess of $ 400,000, but was willing to negotiate the number.

“The truth is, in high-tax states like New York and California, housing is hugely expensive. … People are paying a lot in property taxes. I think we should deal with that insofar as it affects the middle class, part of the upper middle class, ”he said.

“But what we shouldn’t be doing is … repealing SALT because you know people who own mansions and are billionaires,” he added.

Sanders also previously suggested that any change to the SALT deduction limit should focus on the middle class.

“There are middle class families in states where property taxes are very high and they are paying a lot in state and local taxes. And I think we have to support them,” Sanders said during an interview with MSNBC in June.

“On the other hand, if there are some billionaires who own a massive mansion, should they be able to cancel their state and local taxes? The answer is no, they shouldn’t.”

This story was updated at 6:17 pm

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *