Psaki won’t rule out tax cuts for wealthy despite Sanders’ SALT demand

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White House press secretary Jen Psaki refused to allow tax cuts for people with incomes over $400,000 in President Biden’s nearly $2 trillion social and environmental spending bill, despite resistance from the left, led by Sen. Bernie Sanders. Gave.

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The issue is a moot point among Democrats, as either centrists or self-proclaimed socialists in the party can tank legislation in an equally divided Senate and narrowly divided House.

The president has said he will not sign off on a tax increase on people earning less than $400,000 a year. Is he also committed to disallowing any tax deductions for people earning more than $400,000 a year? National Public Radio’s Mara Liasson asked Psaki during a White House press briefing.

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“His bar continues that he’s not raising taxes on anyone earning less than $400,000 a year,” Saki replied. “As you know, SALT . talks about [state and local tax] Reduction – not something that the President proposed, but some … there is clearly support for it and we clearly want to move this legislation forward.”

“We expect the final law to address some of the most unfair consequences of the 2017 tax law SALT provision, particularly the impact on middle-class taxpayers,” said Saki.

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“But again, that bar hasn’t changed, we definitely want to cut taxes for people-“

Jen Psaki refuses tax cuts for the wealthy.
AP Photo/Susan Walsh

“Including people earning over $400,000?” Interjected Liason, who is also a Granthshala News contributor.

“Again, this is not a proposal that the president himself proposed,” Saki said. “But it’s something, as you know, that there’s support in Congress for different versions of it. It’s currently being negotiated. We aim to increase taxes and cut costs on anyone making less than $400,000 a year.” Not there.”

“But can you explain why the tax cut for people earning more than $400,000 is still somehow in line with their values ​​of protecting middle class people?” Liason asked. “It doesn’t make any sense.”

“How come this doesn’t make sense?” Saki retaliated.

Sen. Bernie Sanders
Sen. Bernie Sanders has insisted that no SALT break will be given to those with an annual income of more than $400,000.
AP Photo / Jacqueline Martin

“Why would it be OK to give a tax deduction for someone making more than $400,000?” Liason repeated.

“Is this raising taxes on someone making less than $400,000?” Saki asked suspiciously.

“So that’s all you promised?” Liason asked. “Just no tax increase for anyone under $400,000. Tax cuts for people on that – is it possible?”

Psaki shut down the long-running exchange by arguing that the “inclusiveness of the bill” would benefit the non-rich through new subsidies for health care, childcare and preschool.

Biden did not propose repeal the $10,000 SALT deduction cap, which limits the amount of state and local taxes that can be deducted before federal taxes are paid as part of his social spending bill. . However, a group of House Democrats from high-tax states such as New York and Jersey sought to include it in a measure passed by the House last month.

Senator Joe Munchkin
Sen, Joe Manchin has repeatedly cited his concern about high inflation.
Reuters/Elizabeth Frantz

Experts say that scrapping the SALT deduction limit will be a boon to both middle class and high-income residents of high-rate states. With this in mind, Rep. Tom Suozzi (D-NY) held a “No Salt, No Deal” pledge with colleagues including Representative Josh Gottheimer (D-NJ).

Sanders (I-Vt.) has insisted there will be no SALT break for those with annual incomes over $400,000, while Sen. Bob Menendez (D-NJ) wants a higher limit at $550,000. Talks between the two have apparently stalled on this issue.

Proponents of repeal or change the SALT deduction limit argue that the cost of living and salary is high in the New York City area and that the area should keep wealthy taxpayers from leaving them instead.

Democrats hope to pass Biden’s massive bill before Christmas and the SALT fight isn’t the only controversy that could kill that plan. For example, Sen. Joe Manchin (D-WVA.) has repeatedly cited his concern about high inflation and calls the cost of new programs a budget gimmick to make them appear lower than they actually are.

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