Democrats Tangled Over Tax Breaks for Wealthiest Americans

WASHINGTON – Senate Democrats today reaffirmed their support for a new six-figure tax break for the wealthiest Americans, gutting an amendment by Sen. Chuck Grassley (R-Iowa) to prevent such tax breaks that leave middle class and disadvantaged families behind. Grassley’s amendment failed on vote of 48-51.

 

Democrats have long voiced support for removing the State and Local Tax (SALT) deduction cap, allowing for massive tax breaks in high-tax states that disproportionately benefit the wealthiest households. Grassley’s amendment would have preserved the cap and prevented greater disparity in the tax code.  Democrats blocked the amendment and immediately moved to change the subject, leaving the door wide open to their stated goals of removing the cap. Democrats voted against a similar effort by Grassley to preserve the SALT cap earlier this year.

 

“Democrats have indicated they intend to use reconciliation to provide a $120 billion tax cut to the wealthy via so-called SALT relief. The non-partisan Joint Committee on Taxation estimates 51 percent of the benefit from a SALT cap repeal would go to those making over $1 million, while those with incomes under $50,000 wouldn’t see any benefit. And according to an analysis by the liberal Tax Policy Center, the top one-tenth of one percent of households would receive an average tax cut of nearly $144,000. Democrats on one hand claim the wealthy are not paying their fair share, while at the same time proposing to give millionaires six figure tax cuts. If my Democrat colleagues are genuine in their concerns about the wealthy paying too little tax, they should have no problem voting for my amendment,” Grassley said during the Senate’s consideration of his amendment.

 

Grassley called out Democrats for blocking his amendment in favor of an “alternative” plan that failed to address their plan to move forward with tax breaks for the wealthy.