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IPFS News Link • TAXES: State

Strange Bedfellows: Bernie Sanders and Republicans Agree On SALT Deductions

• https://www.zerohedge.com, by Mike Shedlock

2017 Tax Cuts and Jobs Act (TCJA)

Trump's 2017 tax reform bill (TCJA) put a $10,000 ceiling on ability to deduct SALT (State and Local Tax) deductions on federal tax returns. 

Senate Majority Leader Chuck Schumer (D., NY) has vowed to make SALT fully deductible. 

Curiously, Bernie Sanders is in bed with Republicans.

Q: What's going on?
A: Sanders accurately says deductions overwhelmingly benefit the wealthy. 

Q: Why did Republicans reduce SALT deductions?
A: To punish high tax, left-wing states like New York and California.

$10,000 Cap

With a $10,000 cap, 96% of the repeal would go to the wealthy.

Sanders inconveniently points out the hypocrisy of the Democrats' position.

Schumer's Lie

"We need to cushion the blow of this virus. The SALT cap hurts people affected by the virus. It hurts so many of the metropolitan areas like New York," said Schumer.

Handout to the Rich

In a "Middle Class Memo" Brooking's comments "The SALT tax deduction is a handout to the rich. It should be eliminated not expanded"

Brookings concluded "Lifting the SALT cap much more pro-rich than Trump's tax bill".