Democrats want to give a tax cut to the rich

Interesting article about the SALT deduction, that is holding up negotiations with the current stimulus bill.

And You Thought Democrats Wanted to Tax the Rich

The Tax Foundation estimated that only 13.7% of taxpayers would itemize in 2019. The vast majority of itemizers are in the top 10% of income earners. These households include those who earned $184,200 or more in 2019. These taxpayers would be allowed to deduct their state and local tax amounts from their federal tax obligation.

The rub is that in many Democrat-run states, like New York and California, wealthy residents pay far more in state and local taxes than the $10,000 limit. In 2019, New York Governor Andrew Cuomo got very mad at Florida for stealing some of his wealthiest residents. Facing down a $2.3 billion budget shortfall, he actually went to Washington, D.C., to ask President Trump to reconsider the SALT deduction cap.

At the time, Governor Cuomo stated that the top 1% of earners in New York paid nearly 50% of the state’s taxes. He reiterated that recently when he told reporters he is begging wealthy New Yorkers to return home from their COVID-19 getaways. Not many are biting.


It's a give away to the rich, but Democrats bring it up constantly and would rather have no stimulus bill at all than one without an increase in the deduction for their wealthy donors. I guess that's fair since I would rather have no stimulus bill that has this give away to the rich.

 

The East Coast Establishment used to run the Republican party. Now they run what I call the Corporate Wing of the Dem party.

They are Progressive only as long as it doesn't step on their toes.

This is why having real Progressives show up is so exciting.

Back to the salty situation..

Salt hurts the middle class in big cities like NYC where a lot of blue collar types can earn 100K or more.

You won't see rational tax policy until you get someone like Liz Warren writing it.

 

So the current SALT deduction is $10,000. How much higher do you think it should be?

 

Of course, rich liberal folk want there to be no cap, and they justify their desire to hold more power locally because it provides them more money with which to donate and accomplish that goal. And democrats are never ones to turn down free money. Ever.

 

Chuck Schumer can't stop talking about it and tries to stick it in every bit of legislation he can.

Democrats sure love their tax breaks for the rich!

 

Good question, I don't know the answer.

As a Progressive, I want progressive taxation. But where we need to start is to unwind the horrific mess Republicans made in the 80s.

 

Republicans have been cutting taxes on the rich since the 80s...

So if Dems love the cuts, Republicans are psychopathically obsessive about them.

 

In your post #2 it sounded like you wanted to increase the deduction and help the rich. That doesn't seem very progressive.

 

You're not wrong that Republicans obsessive over tax cuts, but that just makes it more odd that Democrats obsess over this tax cut, which only benefits the rich. There isn't even a pretense that this is about the middle class.

My feeling on this is that Democrats have been free riding on GOP tax cuts, talking smack about them and then enjoying them. So when finally a Republican President supports a tax increase on the rich, the dems get wobbly...interesting.

 

I've gone over the why of that many times.

On the amusing presumption you wanted rational tax reform, vote Progressive.

 

I was, once again, explaining the political structure.

Liz would be freaking brilliant, given the chance to craft policy.

And Progressive.

 

Rational tax reform and progressives, that is amusing!

Gee I guess Liz should have won the primaries then.

 

She can write bills, if we have control of all 3 houses, it might even pass.

 

Control of all three houses?

Progressive civics.

 

Howse, Swenate, Pwesident...

 

The President is a House.

OK.

 

Jr High level tactics, as expected.

Well, that's one way of saying you've got nothing.

 

Considering your comments, I don't think I need anything. You've wandered off your support of tax cuts for the rich to...I don't know now.

 

I've never supported tax cuts for the rich, that goes back to the crazy sh*t the Republicans pulled in the 80s, but admitting you don't know is a start.

 

Didn't you argue in your very first post in this thread that the current SALT deduction should be raised?

 

I was descriptive, not prescriptive.

I did point out how even blue collar guys could get hurt in a big city. But I didn't advocate anything.

Perhaps we could have less fiction, and just a little participation...

 

So are you saying that the SALT deduction should be raised?

 

Nope.

 

OK well I've given up trying to parse your comments. I'll just wait until you can post with some clarity what your position actually is. I'm surprised this is has been so difficult for you though. Usually people on the left like tax hikes on the rich and oppose tax cuts for the rich.

 

I don't have a position on this. I haven't studied it.

It's not difficult, I could do this in a coma. What you are describing there is Progressive taxation. But when you get into policy specifics, things get complicated. That's not an accident, if you can afford a bunch of lawyers, the tax code was designed to be your play toy.