Wealthy progressives need to sit the fuck down. Right now Nancy Pelosi and Chuck Schumer are shouting that Biden needs to eliminate the $10,000 cap on the State and Local Tax deduction, saying that it’s a huge burden on the “Middle Class.” It is not.

The SALT deduction basically says “whatever portion of your income you pay in state and local taxes isn’t taxed by the federal government.”

Example: You’re rich and live in NYC, you make $1M a year and pay 80k in local tax, you’d only pay federal tax on $920k.

Right now though, this is capped at 10k. So actually the rich person pays federal tax on $990k.

This is a tax on the rich, it should not be lifted.

Shouting that lifting this cap would help the middle class borders on lying and Chuck and Nancy (and their wealthy constituents who have gotten wealthier during a pandemic) should stop fighting this.

Did Trump put a cap on SALT just because it hurt rich people living in blue states more than rich people living in red states? Absolutely.

That doesn’t change the fact that lifting it would be regressive and deprive the Biden plan of $80B a year that will be used to make life better for all of us.

Don’t wake up in the morning to go beg for more money for rich people. Just don’t. https://www.brookings.edu/blog/up-front/2020/09/04/the-salt-tax-deduction-is-a-handout-to-the-rich-it-should-be-eliminated-not-expanded/