Source: Common Dreams

Photo by AlexiRosenfeld/Shutterstock
Sen. Bernie Sanders made clear in an interview Sunday that he opposes the push by top Democrats to restore a tax deduction that overwhelmingly benefited the richest households in the U.S., saying such an effort “sends a terrible, terrible message” at a time ofĀ crippling economic painĀ for poor and working-class people.
“You have got to make it clear which side you are onāand you can’t be on the side of the wealthy and powerful if you’re going to really fight for working families,” Sanders (I-Vt.), the chair of the Senate Budget Committee, said in anĀ appearanceĀ on “Axios on HBO.”
The tax break in question is known as theĀ state and local tax (SALT) deduction, which former President Donald Trump and Republican lawmakers capped at $10,000 as part of their 2017 tax law. While the GOP tax measure was highly regressiveādelivering theĀ bulk of its benefitsĀ to the rich and large corporationsāthe SALT cap was “one of the few aspects of the Trump bill that actually promoted tax progressivity,” as theĀ Washington PostĀ pointed outĀ last month.
According to aĀ recent analysisĀ by the Institute on Taxation and Economic Policy (ITEP), 62% of the benefits of repealing the SALT cap would go to the richest 1% and 86% of the benefits would go to the top 5%. ITEP estimated that temporarily suspending the cap would cost more than $90 billion in just one year.
“There is no state where this is a primarily middle-class issue,” the organization found. “In every state and the District of Columbia, more than half of the benefits would go to the richest 5% of taxpayers. In all but six states, more than half of the benefits would go to the richest 1%.
Nonetheless, prominent Democrats from blue statesāwhich were disproportionately impacted by the SALT capāare demanding full restoration of the tax break in President Joe Biden’s infrastructure package,Ā disingenuously characterizingĀ the cap as a major burden on the middle class.
While Biden did not include the SALT cap repeal in hisĀ opening offerĀ unveiled in March, Democrats such as House SpeakerĀ Nancy PelosiĀ (D-Calif.), Senate Majority LeaderĀ Chuck SchumerĀ (D-N.Y.), andĀ Tom SuozziĀ (D-N.Y.) are calling for a revival of the deduction.
AsĀ Common DreamsĀ reportedĀ last month, Suozzi is part of a potentially influential faction of House Democrats that is threatening to oppose Biden’s infrastructure package if the SALT cap repeal is not included.
Though much of the New York congressional delegation has come out in favor of repealāincluding progressive Reps.Ā Jamaal BowmanĀ (D-N.Y.) andĀ Mondaire JonesĀ (D-N.Y.)āRep. Alexandria Ocasio-Cortez (D-N.Y.)Ā saidĀ last month that she doesn’t “think that we should be holding the infrastructure package hostage for a 100% full repeal on SALT, especially in the case of a full repeal.”
“Personally,” Ocasio-Cortez added, “I can’t stress how much that I believe that is a giveaway to the rich.”
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