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65% of households that make $500,000 a year or more are represented by Democrats.
This puts Biden in a catch 22. He has promised to raise taxes on the rich, but Democrats want to increase SALT (state and local tax) deductions from federal income taxes to benefit their rich supporters. Meanwhile Republicans want to keep the SALT deductions at their lower rates pit in place by Trump.
Trump's change in SALT rules made it so lower income groups weren't impacted at all and the brunt fell on the 1%.
The SALT deductions favor the 1% and it is a weird position where Republicans are asking to keep taxes higher on the rich and Democrats are asking to lower taxes on the 1%.
Mainstream Democrats like Pelosi argue that these tax breaks for the rich help states and localities charge more in their own taxes while many rich have moved to lower tax states. Republicans argue that the national government shouldn't subsidize state and local taxes with tax breaks for the rich.
AOC to her credit has sided with Republicans and has questioned the hypocrisy of those who on one hand demand the rich pay their fair share, but in the next moment demand tax breaks for the rich.
Surprisingly, if the Democrats get their way this tax reduction will create a bigger divide in racial income. Asians at the top will keep more and the white black gap that Democrats speak on so much will widen further.
65% of households that make $500,000 a year or more are represented by Democrats.
This puts Biden in a catch 22. He has promised to raise taxes on the rich, but Democrats want to increase SALT (state and local tax) deductions from federal income taxes to benefit their rich supporters. Meanwhile Republicans want to keep the SALT deductions at their lower rates pit in place by Trump.
Trump's change in SALT rules made it so lower income groups weren't impacted at all and the brunt fell on the 1%.
The SALT deductions favor the 1% and it is a weird position where Republicans are asking to keep taxes higher on the rich and Democrats are asking to lower taxes on the 1%.
Mainstream Democrats like Pelosi argue that these tax breaks for the rich help states and localities charge more in their own taxes while many rich have moved to lower tax states. Republicans argue that the national government shouldn't subsidize state and local taxes with tax breaks for the rich.
AOC to her credit has sided with Republicans and has questioned the hypocrisy of those who on one hand demand the rich pay their fair share, but in the next moment demand tax breaks for the rich.
Surprisingly, if the Democrats get their way this tax reduction will create a bigger divide in racial income. Asians at the top will keep more and the white black gap that Democrats speak on so much will widen further.
SALT deduction does not just favor the 1%, it favors those living in higher cost of living blue states.
Many middle class are hurt by Trump's nonsensical SALT rule change. And if helping the middle class also helps the rich, so be it.
AOC represents the very left of the Democrats, she and her group has never liked the liberals and moderates in the Democratic party. So of course she stands where she stands. She has always seen the more affluent group in the Democratic party as her enemy.
SALT deduction does not just favor the 1%, it favors those living in higher cost of living blue states.
Many middle class are hurt by Trump's nonsensical SALT rule change. And if helping the middle class also helps the rich, so be it.
AOC represents the very left of the Democrats, she and her group has never liked the liberals and moderates in the Democratic party. So of course she stands where she stands. She has always seen the more affluent group in the Democratic party as her enemy.
.
It's not about the middle class... it's about the federal government subsidizing states with outrageously high taxes.
By turning this into a class issue, it misses the point. States need to reduce their tax rates - and it's fully within their control to do so.
We never link the pains of the middle class and require states to change. Why not?
It's not about the middle class... it's about the federal government subsidizing states with outrageously high taxes.
By turning this into a class issue, it misses the point. States need to reduce their tax rates - and it's fully within their control to do so.
We never link the pains of the middle class and require states to change. Why not?
You're not going to get any argument from me for government (be it local, state, or federal) to reduce taxes.
Blue states, especially the rich ones, take advantage of their position as economic hub to tax people because they know businesses and people have few other options. I've always disagreed with this, but they get away with it.
SALT deduction does not just favor the 1%, it favors those living in higher cost of living blue states.
Many middle class are hurt by Trump's nonsensical SALT rule change. And if helping the middle class also helps the rich, so be it.
AOC represents the very left of the Democrats, she and her group has never liked the liberals and moderates in the Democratic party. So of course she stands where she stands. She has always seen the more affluent group in the Democratic party as her enemy.
.
The way that Trump lowered the SALT deductions it raised taxes on the wealthy. People in the lower income groups didn't see their taxes rise by a penny.
The deductions for SALT was capped at 10K. Most middle class people aren't paying a total of $10K in SALT taxes.
The bulk of the taxes overwhelmingly fell on the $500K household crowds.
Why should the federal government subsidize the federal income taxes for wealthy people in states that have higher taxes?
65% of households that make $500,000 a year or more are represented by Democrats.
This puts Biden in a catch 22. He has promised to raise taxes on the rich, but Democrats want to increase SALT (state and local tax) deductions from federal income taxes to benefit their rich supporters. Meanwhile Republicans want to keep the SALT deductions at their lower rates pit in place by Trump.
Trump's change in SALT rules made it so lower income groups weren't impacted at all and the brunt fell on the 1%.
The SALT deductions favor the 1% and it is a weird position where Republicans are asking to keep taxes higher on the rich and Democrats are asking to lower taxes on the 1%.
Mainstream Democrats like Pelosi argue that these tax breaks for the rich help states and localities charge more in their own taxes while many rich have moved to lower tax states. Republicans argue that the national government shouldn't subsidize state and local taxes with tax breaks for the rich.
AOC to her credit has sided with Republicans and has questioned the hypocrisy of those who on one hand demand the rich pay their fair share, but in the next moment demand tax breaks for the rich.
Surprisingly, if the Democrats get their way this tax reduction will create a bigger divide in racial income. Asians at the top will keep more and the white black gap that Democrats speak on so much will widen further.
not a 1%. SALT cap increased my federal taxes by a large amount.
The way that Trump lowered the SALT deductions it raised taxes on the wealthy. People in the lower income groups didn't see their taxes rise by a penny.
The deductions for SALT was capped at 10K. Most middle class people aren't paying a total of $10K in SALT taxes.
The bulk of the taxes overwhelmingly fell on the $500K household crowds.
Why should the federal government subsidize the federal income taxes for wealthy people in states that have higher taxes?
If you don't think middle class in blue states are paying more than $10k in SALT taxes, you need to come out here and see.
A starter home in San Francisco cost upward of $1 million, and I'm talking the most basic smallish home in a ok but not great neighborhood.
The way that Trump lowered the SALT deductions it raised taxes on the wealthy. People in the lower income groups didn't see their taxes rise by a penny.
The deductions for SALT was capped at 10K. Most middle class people aren't paying a total of $10K in SALT taxes.
The bulk of the taxes overwhelmingly fell on the $500K household crowds.
Why should the federal government subsidize the federal income taxes for wealthy people in states that have higher taxes?
Incorrect, blue states hit the limit quickly. My property taxes are well over $10k annually and most houses actually are in New Jersey . I do agree though there should be a cap.
Incorrect, blue states hit the limit quickly. My property taxes are well over $10k annually and most houses actually are in New Jersey . I do agree though there should be a cap.
The Brookings Institute, which according to the Washington Post is liberal leaning, says I am correct.
If Biden undoes Trump SALT policy it would benefit the wealthy.
Quote:
Almost all (96 percent) of the benefits of SALT cap repeal would go to the top quintile (giving an average tax cut of $2,640); 57 percent would benefit the top one percent (a cut of $33,100); and 25 percent would benefit the top 0.1 percent (for an average tax cut of nearly $145,000). The remaining four percent of the benefit of removing the cap would go the middle class (i.e. middle 60 percent), for an average annual tax cut of a little less than $27.
Households in the middle 60% would average $27 in tax savings and the top 0.1% would average $145,000 in savings.
Republicans and AOC are right when they say that mainstream Democrats are pushing tax cuts for the well to do.
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