Joe Manchin just put his party on ice – Democrats give up hope as their SALT deduction goes down the drain.
When Democrats were pushing their massive spending bill, they promised it would cost us “zero.” Biden and the left said the rich would finally pay their “fair share” of the tax burden. But critics looked into Biden’s “BBB” bill and discovered a dirty little secret: he wanted to give major tax breaks to his rich buddies.
Democrats have been trying to work on lowering people’s tax burden for a while, and they knew that the way the Republicans treated the SALT deduction was unfair. In blue states, it still affects people less, so in a way, Biden was right in wanting to spend trillions of dollars; we’ll be burdened less by high taxes down the line. There was a chance this bill could survive, with rumors Manchin was playing ball. But he just shut down their attempts, over this major issue.
From The Hill:
A rollback of the cap on the state and local tax (SALT) deduction is on ice after Sen. Joe Manchin (D-W.Va.) raised broader objections to President Biden’s social spending and climate package…
While Democrats are hoping to revise the package so Manchin will support it, that effort will take time and may not end up being successful.
And although Manchin has said little publicly about the SALT issue, there are moderate and progressive senators who have raised concerns that changes to the cap will benefit the wealthy, making it unclear what type of provision on the topic can get consensus among Democrats.
“In June of this year, Joe Biden introduced a new bill to Congress. The purpose? To support socialist programs with the highest level of funding possible, without a way to pay for it. In response, Manchin insisted that the country need a plan before more money is given away. Many have argued against Biden’s increase of the SALT deduction because it will
It doesn’t seem like Biden could make good on his promises, especially to the left, by increasing the SALT deduction. This move would give rich Democrats in blue states all kinds of tax breaks. It would allow them to pay less in federal taxes because they live in a Democrat-run state. So, how could Biden pay for his drastic agenda, without their tax payments?
The passage of the Tax Cuts and Jobs Act of 2017 was not well received by progressives. The far-left wanted to raise taxes on the rich, but this amendment only served to complicate their agenda, because Manchin was decidedly against it.
Such resistance means it is unlikely that this bill will see the light of day. It will take a long time to figure out a compromise—and while Manchin would like to negotiate Biden does not seem on board.
- The SALT deduction in Biden’s spending bill could be put on ice.
- Manchin and other Democrats are not in favor of increasing the SALT cap.
- This deduction would lower rich Americans’ taxes, the opposite of what Biden vowed.