Finance, US News, Wall Street

House Version Of Biden's SALT Economic Agenda Set To Predominantly Benefit Wealthy, High Tax States

House Version Of Biden’s SALT Economic Agenda Set To Predominantly Benefit Wealthy, High Tax States

This should rile up “the squad” plenty…

The House version of Joe Biden’s economic agenda may wind up benefitting New Jersey and other high-tax states, a new report from Bloomberg revealed today.

The middle class in these states would benefit from the expansion of the state and local tax deduction, Representative Josh Gottheimer, a New Jersey Democrat, commented on Sunday night while speaking on CNN.

The House’s version of Biden’s agenda increases the cap on the SALT write-off to $80,000, up from a $10,000 limit that was put in place in 2017, Bloomberg reported.

Senator Bob Menendez of New Jersey spoke out against the idea, arguing that the tax break should only be for those making under $400,000 per year. Senator Bernie Sanders echoed these sentiments, making the case that the deduction increase shouldn’t benefit the wealthiest Americans. 

For those with lower taxes and lower costs of living, Gottheimer says the deduction cap would have less of an effect. “For Bernie Sanders, if you’re in Vermont, it’s a different situation, right?” he commented.

The think tank Committee for a Responsible Federal Budget said that high earners stood to benefit the most from the House version of the bill. Middle income households would get, on average about $20 per year in cuts, while wealthy households would get over $23,000 per year in cuts, the Committee said. 

House leaders are prepared to pass Biden’s bill this month. The bill would then undergo additional changes in the Senate. 

Tyler Durden
Mon, 11/08/2021 – 21:00

Jump To The Original Source

Facebook Comments

Check Also

BioNTech, Pfizer vaccine neutralises Omicron with three shots

Published by Reuters (Reuters) – BioNTech and Pfizer ...