Crapo: Raising the SALT Cap is a Windfall for the Rich
Highlights hypocrisy of proposed SALT deduction increase in press conference
Washington, D.C.--Efforts to reimagine America as a welfare state, and to do so unilaterally through the budget reconciliation process, have revolved around an ever-changing menu of tax hikes guided not by sound tax policy, but by the revenue needed to pay for social spending. These reckless tax hike proposals are being sold under the guise of “leveling the playing field,” or having people pay their “fair share,” but in reality, a large portion of tax relief, if the state and local tax (SALT) deduction cap is raised, will go to the richest individuals in America.
U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) led a press conference today to raise awareness on this provision that provides little or no benefit for low and middle-income households, but generates a substantial tax windfall for the very rich.
Key Excerpts:
“The SALT deduction is a wealth transfer from low-tax to high-tax state residents, particularly high-income residents, and punishes residents of low-tax states for their states’ fiscal prudence.
“The SALT tax deduction is the second largest part of the spending bill. Far higher than money for climate policies, higher than for medical and paid family leave, higher than energy tax policies, higher than the child tax credit. In fact, $85 billion more than the child tax credit.
“A majority of the tax benefit would go to wealthy taxpayers in the 10 largest states. Taxpayers in California, New York, New Jersey and Illinois alone account for 46 percent of the cost.
“Raising the cap to $80,000 would provide almost no benefit for middle-income households . . . the average tax savings for those Americans is $20. Millionaires would receive an average tax cut of about $14,900.
“No matter how our Democrat colleagues frame their proposals to increase the SALT cap, the proposal is regressive in any way you look at it. The expansion of the SALT cap is costly and is a break for people with higher incomes.”
You can watch the press conference in its entirety HERE.
