A former economic advisor of president obama torn house Democrats’ are considering giving a tax cut to millionaires, especially those in heavily taxed blue states, calling the proposal “obscene.”
Jason Furman, chairman of the Council of Economic Advisers (ECA) under former President Obama, lambasted Democrats’ plans to repeal the national and local tax deduction cap (SALT), stressing that multi-millionaires would benefit the most from the lifting of the SALT ceiling. .
The Trump-Era Tax Cuts and Jobs Act capped the SALT deduction at $ 10,000, but House Democrats are pushing to lift the cap for five years, which would massively benefit wealthy people in high tax states.
Rep. Josh Gottenheimer, DN.J., in a tweet on Tuesday, promised that the âSALT deduction will be in the last legislative packageâ for the Democrats’ welfare spending bill.
“We will get there,” he wrote.
âI guess the majority of Americans with a net worth of $ 50 million to $ 300 million would get a tax cut as part of the Build Back Better plan with a complete repeal of SALT,â Furman wrote on Twitter Tuesday.
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âThe bill would do more for the super-rich than it does for climate change, child care or kindergarten,â Furman continued. “It’s obscene.”
Furman also indicated that some “billionaires would get a net tax cut from Build Back Better. [and] SALT repeal “and he didn’t” calculate the net worth numbers, but the SALT deduction is worth much more than any tax increase for people earning up to $ 10 million. “
“If your fortune is $ 200 million, your income will probably be less than about $ 10 million,” said the former president of the CEA. “Under the SALT provision [and] the rest of the household bill making about $ 40 million per year will benefit from a net tax cut. “
The Committee for a Responsible Federal Budget (CRFB), a non-partisan nonprofit “committed to educating the public on issues that have a significant impact on fiscal policy,” wrote about the conundrum Democrats face on a policy that would lower taxes for the rich instead of raising them.
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The CRFB analysis noted that “a repeal of the SALT cap over two years – if included – would cut taxes for the richest 5% of wage earners by more than $ 70 billion in fiscal year 2023” .
âThe result would be a net direct tax reduction of $ 30 billion for those in the top 5% when the SALT cap repeal is in effect. Those in the top 1% would also face a net tax cut, although we haven’t estimated the magnitude. The analysis noted.
Houston Keene is a reporter for Fox News Digital. You can find him on Twitter at @HoustonKeene.