Wednesday, November 17, 2021

A tax cut for the super-rich?

Yep, it is in the "Build Back Better" legislation.

In fact, it showers more money on the wealthy than all but one of the programs in the so-called party of the working class's proposal:

The House is expected to vote this week on President Biden’s Build Back Better legislation. The social spending bill includes investments in clean energy and affordable child care — but it also includes a $285 billion tax cut that would almost exclusively benefit high-income households over the next five years.

The measure would allow households to increase their deduction from state and local taxes from $10,000 to $80,000 through 2026, and then impose a new deduction cap through 2031. It’s the second-most expensive item in the legislation over the next five years, more costly than establishing a paid family and medical leave program, and nearly twice as expensive as funding home-medical services for the elderly and disabled, according to an analysis by the Committee for a Responsible Federal Budget.

The "SALT" (state and local tax) deduction allows high-earners in high-tax states to rob the Federal treasury via a deduction for those taxes. Likewise, since it decreases the pain on such earners, it lessens the pressure on the leaders of high tax states, allowing them to maintain them and shove the loss on to the rest of the country.

Back in the time of Orange Man Bad, this regressive deduction was capped at $10K, to howls from the wealthy and high-tax jurisdictions.

Now they are trying to "fix" that and turn the cash sluice back on.

Hypocrisy? Not at all.

No, hypocrisy presumes a person's occasional nod to a moral standard external to him even as he violates it.

When the object of power is power, there is no hypocrisy.

 


No comments:

Post a Comment

Be reasonably civil. Ire alloyed with reason is fine. But slagging the host gets you the banhammer.

The Secret to Thriving during the Eastern Great Lent.

A couple secrets, actually. The first is Lebanese and Syrian cooking. At our new Melkite parish, the Divine Liturgy has been followed by Len...