TAX CUTS FOR THE RICH!

Powerline ^ | November 4,2021 | BY JOHN HINDERAKER

[Hojczyk]

That changed with the 2017 Tax Cuts and Jobs Act–one of the Trump administration’s signal achievements–which capped the deduction for state and local taxes at $10,000. Thus, the vast majority of blue state taxpayers kept their privileged tax treatment. The only ones who lost out were high-income blue staters who are now only partly subsidized by blue collar taxpayers in Tennessee and Florida.

But the Democratic Party’s core supporters are wealthy people in blue states, so restoring the full state and local tax deduction–eliminating the $10,000 cap–has been a top priority for Chuck Schumer, Nancy Pelosi, et al. Sure enough, the Democrats’ reconciliation bill–a Christmas package for the Left–would restore full deductibility, in order to benefit high-income blue-staters. Dan Crenshaw comments, with data from the Committee for a Responsible Federal Budget:

When “tax the rich” really means “let’s write catchy slogans on dresses but actually give the rich a $36,000 tax cut.”

Yes, this is what Democrats want to put in the reconciliation bill. No, this is not a joke.

Price hikes for you, tax cuts for rich New Yorkers. pic.twitter.com/bgGXLL4XWK

— Dan Crenshaw (@DanCrenshawTX) November 4, 2021

There is nothing surprising or controversial about this. When you eliminate a $10,000 cap on the state and local tax deduction, you obviously are only going to benefit high-income taxpayers. And you are doing nothing for middle-class taxpayers in states like Texas, Florida, Tennessee, and South Dakota that manage their finances wisely and don’t overtax their residents.

There is nothing necessarily wrong with being the party of the blue-state rich. Democrats just need to own it. That is who they are.

[Scott from the Left Coast]

Most of “the rich” are Democrats.

Fascism pays.

[Cobra64]

Why do people continue to confuse assets with revenue?

Rich represents abundant wealth.

Income is revenue.

You can have abundant revenue and not be rich. Maybe becuz you gots lotsa expenses.

[packagingguy]

Hmmm, so coastal elites aren’t so enthusiastic about socialism after all. They and the Democrats just want to soak the middle and working classes.

[FrankRizzo890]

It cost me money, but it really was a brilliant move. Now, in order to “undo” this, the dems have to vote for a tax cut for the “rich people”. And the optics of this are hilarious.

[Organic Panic]

With those tax cuts for “the rich” I paid more taxes during the Trump years then ever before. Business was terrific. I expanded, hired people, and was going full bore until the Kung Flu sent panic in to oue idiot state governor and she locked it down, I have lost hundreds of thousands, in fact, easily over 7 figures in lost work and savings. BUT hey. I am so safe.

[Alberta's Child]

When you eliminate a $10,000 cap on the state and local tax deduction, you obviously are only going to benefit high-income taxpayers.

This is an ignorant and simplistic statement. There are two things wrong with it:

1. Before 2017, the full deductibility of state and local taxes (SALT) was meaningless to a large number of "high-income taxpayers" because they fell in the Alternative Minimum Tax (AMT) bracket where these itemized deductions were disallowed.

2. The taxpayers most heavily affected by the SALT deduction limit were those who lived in high-cost areas where "high-income" earners had "middle-income" standards of living, and who earned enough to itemize their deductions but not enough to pay the AMT.

The SALT deduction limit primarily affected a narrow band of taxpayers who lived mostly in the "purple/red" suburban areas around major cities in deep "blue" states. In other words, it affected the voters in those areas where the Democrats made huge gains in the House elections in 2018.

The Democrats are pushing hard to eliminate the SALT deduction cap because they're going to lose many of those swing districts in 2022 if they don't.

[griswold3]

Progressive m.o. Reward your friends. Punish your enemies.