Golden Urges House Leaders to Reject Tax Changes that Favor the Wealthy in Reconciliation Bill
SALT tax provision would provide a tax break to 93% of millionaires, just 1.6% of people making under $100,000
WASHINGTON — Congressman Jared Golden (ME-02) continued his efforts to shape the still-developing social services spending bill being negotiated in Congress this week, pushing House leadership to oppose efforts to add a tax provision to the legislation that would overwhelmingly benefit wealthy Americans. The provision, pushed by lawmakers from New York, New Jersey, and California, would lift the cap on State and Local Tax (SALT) deductions households can take on their federal taxes.
Reports from the White House after Golden sent his letter indicated that the president has taken the SALT proposal “off of the table.”
“I am writing today to urge you to resist calls to insert an increased State and Local Tax (SALT) deduction into the reconciliation bill. An increase in this tax break would disproportionately benefit the wealthy,” wrote Golden to House Ways and Means Committee Chairman Rep. Richie Neal (MA-01).
“Congress has a choice: we can enact a tax cut for the wealthy, or we can pay for historic investments for America’s working and middle classes. You and your committee wisely chose the latter. I urge you to stand by that judgement,” Golden continued.
Under current law, households can deduct up to $10,000 that they pay in state and local taxes from their federal income tax. Raising or eliminating that cap, as has been proposed in the House and Senate, would provide a tax break that would flow overwhelmingly to the wealthy and super-wealthy.
Analysis of a bill that would generally eliminate the SALT cap found that 93 percent of millionaires would receive a tax break from the change, while just 1.4 percent of those who make under $100,000 a year would see any benefit. Further, more than half of the tax cuts generated by repealing the SALT cap would go to the wealthiest 1 percent of households. Ninety-seven percent of the benefits would go to the top 20 percent of earners.
A full SALT cap repeal would also cost the federal government approximately $88 billion a year, a gap that legislators would need to make up elsewhere in the reconciliation bill to fully pay for the legislation.
Read the letter here.