Late. Bernie Sanders (I-Vt.) Criticized Parliament Speaker Nancy Pelosi (D-Calif.) For pushing for a huge tax cut for the richest 1% as part of Democrats’ Build Back Better legislation.
“It’s bad politics, it’s bad politics,” Sanders warned at the Capitol Thursday.
“The Democrats have properly campaigned on the understanding that in the midst of massive income and wealth inequality, we need to demand that the wealthy start paying their fair share, not give them more tax breaks,” he continued.
“The bottom line: We have to help the middle class, not the 1%.”
Sanders also complained in a tweet that “the hypocrisy is too strong” for Democrats to give the wealthy yet another undeserved tax cut.
It is about Pelosi’s support for a House plan to raise the amount of state and local taxes that can be deducted from federal tax bills to $ 80,000 (through 2030). The current $ 10,000 ceiling created under Donald Trump’s 2017 tax law was designed for press residents of high-tax blue states to pay for massive cuts in corporation taxes.
Pelosi promised Thursday to fight for the elevated cap.
“This is not about who gets a tax cut; it’s about which states get the revenue they need to meet the needs of the population, ”she said.
The plan would predominantly benefit wealthy Americans and do much less for the middle class. About 94% of the state and local tax benefits in Parliament’s proposed ceiling of $ 80,000 will go to top 20% of employees – or those earning about $ 175,000 or more, according to an analysis by the Urban Brookings Tax Policy Center.
The non-partisan Committee on a Responsible Federal Budget estimated that a family of four in Washington earning $ 1 million a year would receive 10 times as much tax relief from the proposed deduction as a middle-class family would receive from the additional child tax deduction in the same package.
Sanders and Senator Bob Menendez (DN.J.) have proposed keeping the $ 10,000 limit – but with one exception for households earning less than $ 400,000.
But the Tax Policy Center said the Sanders and Menendez plan also favors the richest fifth of U.S. households and “would only be one modest improvement over the house’s $ 80,000 SALT ceiling.”
Other Democrats are also upset about raising the ceiling.
“If you had told me a year ago that the second largest piece of a signature law from this Congress was * $ 280 billion in tax payouts to millionaires, * I would have told you that Republicans were in charge,” Sen. Jared Golden (D-Maine) tweeted.
Late. Jon Tester (D-Mont.) Told NBC News that the change “gives tax breaks to the wrong people.”
The vote in Parliament on the Build Back Better Bill was delayed until Friday due to the marathon accusations of minority leader Kevin McCarthy against it.
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