Someone ought to inform Speaker Nancy Pelosi about the Corona Virus outbreak, as a result of her laser concentrate on pushing her political agenda suggests she’s unaware of it.
The newest proof: She needs to “retroactively” roll again Congress’ 2017 cap on tax deductions for state and native taxes (SALT), The New York Times experiences.
She claims lifting the cap would handle the financial fallout of COVID-19. She needs her “repair” to be a part of Congress’ subsequent rescue plan.
But her concept has nothing to do with boosting the economic system and all the things to do with serving to Dems in blue states, like California, New York, New Jersey and Illinois. More than half the advantages of a repeal would go to people making greater than $1 million. Don’t Dems oppose tax breaks for the wealthy?
No, right here’s Pelosi’s actual drawback: Heavily liberal states, with Democratic leaders, typically impose the highest native levies. The SALT deduction let high-income taxpayers recoup a part of these excessive prices by paying much less federal tax.
With the cap, although, these taxpayers can’t get well as a lot, so the native tax chew hits tougher. That has these states’ leaders (understandably) fearing rich residents will flee, taking all their tax revenues with them. And slightly than decrease their taxes to forestall that, they need the cap lifted.
It’s one other try, in different phrases, by Pelosi to make use of the pandemic to ram by means of the Dems’ want record. Last week, she truly held up Congress’ $2.2 trillion rescue plan to push a number of asks — associated to local weather change, voting rights, range, and many others.
These numerous strikes present that Pelosi isn’t actually taking the disaster significantly — she’s simply on the lookout for an excuse to get her partisan priorities handed.