![Silence from congressional liberals as Democrats move toward SALT tax cut for wealthy](https://s.yimg.com/uu/api/res/1.2/ytKhuetr26XpAV0jlr_2cQ--~B/aD05NDA7dz0xNTQwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/washington_examiner_articles_265/5aefe50292c0aa066823d9c83b316e7c)
The Democrats are moving toward increasing the federal tax deductions for state and local taxes paid by the Democrats, which would lead to large tax cuts for wealthy members of Congress.Senate Democrats approved a budget resolution this week that will allow them the ability to pass major spending bills without the need for GOP votes. Leaders indicated that the SALT cap relief would be part of the legislative package.Representatives of high-tax countries who stand to lose the full deduction are strongly supportive of the idea of increasing the SALT cap.Liberal Democrats are opposed to raising the cap, arguing that most of the benefits will go to households with very high incomes. Because enough House Democrats opposed tax cuts in the past, Speaker Nancy Pelosi could not pass the bill without GOP support if they refused to stand firm.The Washington Examiner did not reach out to the Democrats opposing the removal of the SALT cap this week.DEMOCRATS PREPARE PLAN TO PASS THE SALT CAP REELIEF TAX BREAAK FOR WEALTHYSenator Bernie Sanders, a Vermont socialist, heads the budget committee. He included relief for SALT in the Democratic budget proposal, despite having previously expressed opposition to the lifting of the cap. Sanders stated in May that he didn't support attempts to reduce the cap and restore the full SALT deduction.The former presidential candidate said that it sends a horrible, terrible message to Republicans who tell us this is a tax cut for the rich. It is difficult when you have small margins. However, Schumer and Pelosi are fair and can be commended for their efforts. You must make it clear who you support and why you don't want to fight for the wealthy and powerful.Continue the storyThe wealthy would be most affected by the removal of the SALT cap. Tax Policy Center's study found that only 3 percent of middle-income households would be less taxed if the cap was removed. According to the Tax Foundation, a total repeal of SALT deduction caps could result in a reduction in federal revenue of $380 billion by 2025.This issue has been a strange match between Republicans and Democrats. The liberal-leaning Institute on Taxation and Economic Policy slammed a repeal as unfair.ITEP estimated that two-thirds of the cap's revenue, or $67 billion, could flow to white taxpayers making more than $200,000 annually if it were removed. According to the report, a complete removal of the cap could lead to racial and wealth inequality in the country.Uncapped SALT deductions are intended to reward families with high incomes and wealth. This would be a benefit for all income levels and will increase the nation's unconscionable wealth gap and racial income, according to an ITEP April report. SALT cap repeal would benefit the vast majority of families, regardless of race. Families of color would be even less likely to receive any tax benefits.The last time Democrats tried to lift the cap was in 2019, when they had a strong 34-member majority in Congress. It passed 218 to206 in that vote. However, it was ultimately rejected by the Senate, which was controlled by the GOP. The Democrats' 34-vote majority is now just eight. This means that Pelosi will require every vote she can get.The Washington Examiner contacted all the Democrats in Congress that voted against the 2019 legislation to find out their positions on raising the cap. However, they did not respond.The measure was opposed by progressives and legislators from red states, such as Reps. Joaquin Castro in Texas, Alexandria Ocasio-Cortez, New York Reps., Abigail Spanberger, Virginia Reps., Stephanie Murphy, Florida and Mark Pocan, Wisconsin.Ocasio Cortez called the repeal of this cap a gift for billionaires and an extreme position. However, she stated that there is room for discussion about the policy. Her office didn't respond to requests for comment.Murphy, a centrist said that repealing the cap would do little for her constituents, but she hinted at the possibility to reach a compromise position.It is difficult to argue for lifting the cap when revenues are being sought. We will have to pay for it, she said at a BakerHostetler webinar.The Washington Examiner also reached out to her office but did not receive a response.Despite being criticized for removing the cap, Democrats from high tax states like New York hope to leverage the House's thin majority to lift up SALT. Reps. Josh Gottheimer from New Jersey and Tom Suozzi from New York are leading the charge to repeal this cap. Former roommates have gathered their SALT caucus, which includes more than 30 Republicans as well as Democrats.According to the group, the cap is a threat to economic vitality and could cause the wealthy to move to lower-tax countries because of its high tax rates.Suozzi, also known as Mr. SALT.Suozzi stated that this group will work together to educate the public about the differences between the middle classes in my district and in many other districts across the country.33 legislators is quite a number considering the House's close split and the fact that Democrats will need all the votes they can to pass the $3.5 Trillion spending package through reconciliation.When Sanders, one of the most liberal legislators on Capitol Hill, included SALT relief in his budget proposal, the prospects for the SALT Caucus were brightened.There are still measures that can be taken to avoid full repeal. Roll Call heard from Rep. Bill Pascrell Jr., a member of the SALT caucus in New Jersey last month that he was open to negotiations on raising the cap if there is a desire to do so.I would have liked to say that I had set the cap at about $25,000 He said that he would settle for $20,000CLICK HERE FOR MORE INFORMATION FROM THE WASHINGTON XAMINERRepublicans, who were behind the 2017 tax cuts that capped the deduction at $10,000, are now feeling the heat from the move. The move to increase or eliminate the cap has been criticized by most of the GOP, except for a few legislators from high-income states with high taxes.Democrats claim that the wealthy don't pay their fair share while simultaneously proposing tax cuts to millionaires in six-figure amounts, according to Sen. Chuck Grassley, Iowa. He pitched an unsuccessful amendment to this week's package which would have stopped any changes to the existing law.Washington Examiner VideosTags: News. Congress. Budgets and Deficits. Taxes. Alexandria OcasioCortez. Bernie Sanders. Democratic Party.Original Author: Zachary HalaschakOriginal Location: Democrats move towards a SALT tax cut for the wealthy despite silence from congressional liberals