Washington, D.C. – As Democrats scramble to save their multi-trillion-dollar tax and spending bill, one thing is clear: “…this package will not pass without some sort of SALT fix.”
Removing the cap on State and Local Tax (SALT) deductions has long been a top priority of Majority Leader Chuck Schumer. Doing so would represent a large tax cut for wealthy people in high-tax states like New York. And it comes as Democrats are slashing big ticket social welfare programs from their bill that are a priority of progressive lawmakers.
But not all liberals are a fan of changing SALT. Schumer’s potential 2022 primary opponent, Congresswoman Alexandria Ocasio-Cortez, once called raising the SALT cap a “giveaway to the rich…a gift to the billionaires.” The unofficial policy director of the U.S. Senate, Bernie Sanders agrees. In fact, he went so far as to say that it “sends a terrible, terrible message when you have Republicans telling us that this is a tax break for the rich.”
Very true, Bernie. It looks like Schumer is looking out for his rich donor friends as he scrambles to ward off an expensive primary opponent.
Statement from NRSC Spokesman T.W. Arrighi: “Chuck Schumer is threatening to scuttle his party’s agenda unless he gets a tax cut for his wealthy friends. Some New Yorkers like AOC might not like SALT deductions, but if Schumer is going to keep her out of a primary, he’ll need all the money he can get from rich New York donors.”
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