Democrats in a SALT pickle

[Brian4Liberty]

It’s a pickle for Democrats. How do you self-righteously demagogue about taxing the rich, yet at the same time your first priority is cutting taxes on the rich?

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Blue-state Democrats will get their complaints in today at a pair of House Ways and Means hearings on the tax law’s cap on state and local deductions. But the path forward for offering relief from those limits — which would overwhelmingly help the wealthy — remains murky at best. (https://www.politico.com/newsletters/morning-tax/2019/06/25/salt-slinging-450493)


FIST-POUNDING TIME: Today’s Ways and Means subcommittee hearings on the SALT cap will undoubtedly feature testimony about how that $10,000 limit harms both state and local governments’ ability to offer quality services and puts the squeeze on average workers.

What’s unlikely to come through today is any consensus on the Democratic side about how to at least offer some relief from the SALT cap. A bipartisan group of lawmakers has released a bill to totally kill the limit, and there are also proposals to both lift the cap and give higher exemptions for married couples.
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More: https://www.politico.com/newsletters/morning-tax/2019/06/25/salt-slinging-450493

[Swordsmyth]

It's one of the best moves Trump has made.

[Superfluous Man]

It seems like the path forward for them that's politically attractive enough to their base and still soaks the rich should be simple enough. Just bundle raising the SALT cap deduction with also raising the rates on the upper tax brackets. Then the rich won't have a net benefit but the advantage of the blue states over the red ones will be restored.

[Swordsmyth]

It seems like the path forward for them that's politically attractive enough to their base and still soaks the rich should be simple enough. Just bundle raising the SALT cap deduction with also raising the rates on the upper tax brackets. Then the rich won't have a net benefit but the advantage of the blue states over the red ones will be restored.
That would never pass the Senate and Trump would veto it.

[Superfluous Man]

That would never pass the Senate and Trump would veto it.

Sure, but I'm just talking about what position they can campaign on. Presumably, the whole point is to offer a proposal that a president of their own party would sign.

[Brian4Liberty]

Sure, but I'm just talking about what position they can campaign on. Presumably, the whole point is to offer a proposal that a president of their own party would sign.

They could campaign on just about anything, the less realistic the better.

I’m sure that they would be more than happy in practice to eliminate the SALT limit, raise progressive income tax rates, and implement so many specialized deductions, exemptions, loopholes and credits for the ultra-wealthy that they and their crony friends will get paid by the government (net). Soak the honest and unsophisticated middle class. Brilliant!

[Brian4Liberty]

And this comes after Blue State lawyers have explored and attempted every conceivable loophole and failed.

No doubt new loopholes will appear soon buried in some legislation.

[Libertea Party]

I :heart: this story.

Shows how the "party of the working class" marketing is just a scam. Also shows political opportunity in that even Democrats are vulnerable to lobbying for lower taxes from their constituencies.

More here with Grover Norquist:

https://finance.yahoo.com/video/hypocrisy-democrats-calls-repeal-salt-161820872.html