Friday, November 05, 2021

SALT in the wound

"Democrats’ Proposed Tax Cuts For The Rich Are Threatening To Derail The Build Back Better Act" (McLeod).  The dishonesty is breathtaking:  "House Set to Vote Friday on Biden’s $1.75 Trillion Economic Plan" (House/Wasson) (hint: you know something is wrong when Menendez is your 'progressive'):
"A last-minute change to the tax and spending plan involved the federal deduction for state and local taxes, or SALT. Instead of moving forward with a proposal to lift the $10,000 SALT cap to $72,500 through 2031, the bill will now raise it to $80,000 through 2030 according to a person familiar with the negotiations. 

The cap would snap back to $10,000 in 2031. Compared to current law where there is no cap after 2025, the provision would raise $14.8 billion in revenue over 10 years. 

The Senate is expected to make its own changes to the SALT proposal. Senators Bernie Sanders of Vermont and Bob Menendez of New Jersey have proposed an unlimited cap but would cut off access to the deduction for people with incomes above $400,000 to $500,000."
Note how they kick the can down the road to create imaginary savings (which will be reversed once the Republicans, now inevitably, take over).

"Michael Hudson: Is This the End of the Unreformable Democratic Party?" (Hudson).  I'm not so optimistic that the Democrats will disappear - having two extreme right-wing parties is how things are supposed to work.  For one thing, the 'progressives' would have to give up on identity politics, which they would never do.
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