When Democrats were pushing their massive spending bill, they promised it would cost us “zero.” Biden and the left said the rich would finally pay their “fair share” of the tax burden. But critics looked into Biden’s “BBB” bill and discovered a dirty little secret. Democrats wanted to give their rich buddies major tax breaks.
Democrats were trying to raise the SALT deduction, so Democrats in blue states pay less in taxes. This meant that the rich would actually pay less, even as Biden wanted to spend trillions. There was a chance this bill could survive, with rumors Manchin was playing ball. But he just shut down their attempts, over this major issue.
From The Hill:
A rollback of the cap on the state and local tax (SALT) deduction is on ice after Sen. Joe Manchin (D-W.Va.) raised broader objections to President Biden’s social spending and climate package…
While Democrats are hoping to revise the package so Manchin will support it, that effort will take time and may not end up being successful.
And although Manchin has said little publicly about the SALT issue, there are moderate and progressive senators who have raised concerns that changes to the cap will benefit the wealthy, making it unclear what type of provision on the topic can get consensus among Democrats.
Manchin refused to support Biden’s socialist spending bill. He questioned how the government could so much money, without a way to pay for it. Many raised objections to Biden’s attempt to increase the SALT deduction—because it would give the wealthy a tax break.
It doesn’t seem like Biden could make good on his promises, especially to the left, by increasing the SALT deduction. This move would give rich Democrats in blue states all kinds of tax breaks. It would allow them to pay less in federal taxes because they live in a Democrat-run state. So, how could Biden pay for his drastic agenda, without their tax payments?
Even progressives were not happy with this change. The far left is determined to raise taxes on the rich. And this deduction would certainly spoil their plans. This only further complicates their agenda, since Manchin was not on board for all this spending in the first place.
Such resistance means it is unlikely that this bill will see the light of day. It will take a long time to figure out a compromise—and while Manchin would like to negotiate Biden does not seem on board.
- The SALT deduction in Biden’s spending bill could be put on ice.
- Manchin and other Democrats are not in favor of increasing the SALT cap.
- This deduction would lower rich Americans’ taxes, the opposite of what Biden vowed.
Source: The Hill