The Party of the Rich Wants Its Special Tax Breaks

The Democrats are the Party of the Rich. They were swept into the House majority by a revolt of the elites. This party of Orange County, Westchester County, and Chicago’s North Shore is playing the part, wasting no time pushing policies to hand special tax breaks to their upper-middle-class constituents.

Consider Rep. Nita Lowey, D-N.Y. As the chairwoman of the Appropriations Committee, former chairwoman of the Democratic Congressional Campaign Committee, and in the top 10 in seniority among Democrats, Lowey is among the most powerful members of Congress.

She has introduced two bills so far. One is the appropriations measure to reopen the government. The other is a major tax cut for the rich.

Lowey’s bill would undo exactly one part of the Tax Cuts and Jobs Act: the limit on deductibility of state and local taxes, including property taxes. The law capped the state and local tax deduction, or SALT deduction, at $10,000.

That cap doesn’t affect most tax filers. If you claim the standard deduction, as most taxpayers do, you don’t benefit from the SALT deduction. Since tax reform nearly doubled the standard deduction, about 88 percent of all taxpayers will not itemize. If your state and local taxes are at or below $10,000 per year, you also aren’t affected by the cap.

The cap on the SALT deduction mostly cut into the tax breaks of high earners in high-tax places.

 

Read the whole thing here.

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