As a new infrastructure spending bill crafted by the Biden administration has been making its way through the court of public opinion, a Democratic pet project less visible to voters has also arisen. A plan that would vastly benefit the rich and shock the progressives that dominate social media by playing defense for the Democratic Party’s current anti-corporate attitude. While the proposed infrastructure and tax bill has been claiming headlines this week, the mainstream media has been keeping quiet about the Democrats’ latest push to lessen the tax burden on the wealthiest residents in their respective states.
The Trump administration’s Tax Cuts and Jobs Act included a cap on State And Local Tax deductions (SALT) that prevented taxpayers with high income and property taxes from itemizing their tax bills and reducing them to an unlimited degree. The cap on these deductions began in 2018, and the burden was felt most by taxpayers with incomes higher than $100,000. The wealthy in states like California, New York, New Jersey, Texas, Pennsylvania, and Illinois were significantly affected by this cap.
Tax the Rich? Not Exactly
The latest push to remove the SALT caps that disproportionately affected the tax obligations of the wealthiest Americans has come from none other than the Democratic Party, whose virtue signaling about the rich paying their “fair share” in taxes has turned out to be little more than a ruse for their bottom line. Top Democrats like Speaker Nancy Pelosi (D-CA) and Senator Chuck Schumer (D-NY) have come forward to announce their support for repealing the cap on state and local tax deductions. Reports from this week made a point to suggest that various House Democrats from New York and New Jersey refused to back any new tax plans without the removal of the SALT cap.
Thus far, the mainstream media has steered clear of pressing congressional Democrats on their positions regarding the SALT caps. Shining light on the double standards of Democrats claiming to support the increased taxation of the rich (read: private enterprise) while desiring to cut taxes for the wealthy in their own home states would require far too much fact-finding from the journalists and blue checkmarks that dominate the media outlets today.
Democratic socialists, progressives, and working-class voters are already pointing out the hypocrisy of cutting taxes for the rich simply for living in blue states. They argue that these states could lower their exorbitant tax rates for the middle class their legislators falsely claim are being affected by the SALT cap.
The governors of California, New York, and New Jersey, all blue state strongholds, have already penned letters to the Biden administration begging for selective tax breaks for their states. Similarly, the governors only became outraged once their upper class, coastal elite Democratic donors had to pay for the policies they advocated. By claiming that their states are experiencing an exodus of residents due to the SALT caps rather than their rising cost of living and sinking quality of life, they hope to lobby the Biden administration to favor them in exchange for their political support. Even as Congress returns to session next week, it is increasingly likely that the media will continue to avoid discussing the truth of the push to remove the SALT cap if it remains a bargaining chip for blue-state Democrats in Congress.
Read more from Jose Backer.