Jason Furman, who was the chief economic adviser to former President Barack Obama, tweeted Thursday that the distributive effect of the House’s $ 80,000 SALT cap “is even worse than I feared,” citing an analysis from the Tax Policy Center published earlier today.
âIt could be greatly improved by adding an income limit for extending the cap so that no one earning more than a broad middle class income gets it,â Furman said. “Some senators have talked about it, I hope they will.”
TPC’s analysis shows the benefit of the $ 80,000 cap for those deprived of relief under the Sanders-Menendez proposal: Households earning between $ 500,000 and $ 1 million next year would benefit from ‘an average tax reduction of $ 6,100 under the House bill.
And while all households earning over $ 1 million next year would see tax increases totaling about $ 68,000 on average, within that group, nearly two-thirds of millionaires would still benefit from cuts. taxes worth nearly $ 16,800.
The tax cuts for high incomes would not cover the entire decade under the House plan, as it extends the cap beyond its current expiration in 2025. This means that later in the decade, the cap of $ 80,000 would be a burden rather than a relief.