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It was described by Sen. Bernie Sanders as "beyond acceptable" in the Democratic reconciliation bill.
Analyses show that a plan to repeal the SALT deductions caps would result in a huge windfall for the richest.
Disputes among Democrats have led to the Senate entrapment of the $1.75 trillion bill.
In a tweet, Sen. Bernie Sanders, Vermont, called "beyond inacceptable" a Democratic Social Care and Climate Change Bill that, according to a new analysis could deliver a tax cut for the wealthiest 5%.
Insider reported Tuesday that the $1.75 social spending plan was being updated with a new provision that would greatly benefit wealthy Americans.
Some Democratic lawmakers have long supported the repeal of the SALT clause, which limits federal deductions for state or local tax at $10,000, because they believe the Trump-era law unfairly affected those living in high-tax blue states like New Jersey and California.
SALT allows taxpayers to subtract their state and local taxes from their federal obligation. Trump's tax plan particularly affected people who own properties in multiple states. They could deduct their state-tax totals from their federal obligation, for example, New York City property taxes.
The Committee for a Responsible Federal Budget has found that the repeal of the cap could result in a much greater cost to the federal government than any tax increases on the wealthy. It would also mean a $30 billion net tax cut for top 5%.
"This is unacceptable. Sanders tweeted Tuesday that he would not support tax breaks for billionaires, linking to a CNN report.
Sanders stated in a statement that Democrats campaigned for and won an agenda that requires that the very rich pay their fair share. It is not one that grants them more tax breaks. "I am open for a compromise approach that protects the middle classes in high-tax countries."
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He added, "I won't support additional tax breaks for billionaires."
In Congress, the social and climate change bill has been stalled for weeks amid disagreements between moderates and progressive Democrats over its size and funding. To pass the bill, the Democrats need a slim majority of 50-50 senators to pass it. This means that any objections to any measure in it must be accommodated.
Sanders previously indicated that he was open to revising, but not abrogating the SALT code entirely. This would be possible under the current plan until 2026.
"There are middle-class families living in states with high property taxes who are paying a lot of state and local taxes. Sanders spoke to MSNBC during a June interview.
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