5-Year SALT Cap Repeal Would Be Costliest Part of Build Back Better

According to press reports, policymakers are considering adding a five-year repeal of the $10,000 cap on the State and Local Tax (SALT) deduction to their Build Back Better reconciliation package – including one retroactive year. As we’ve shown before, this policy is highly regressive and would turn Build Back Better into a net tax cut for the vast majority of high-income households.

A five-year repeal would cost roughly $475 billion, with $400 billion of the tax cut going to the top 5 percent of households. That is more than any other part of Build Back Better, including the Child Tax Credit, spending on child care and pre-K, climate-related tax credits, or health care funding.


The tax cut would allegedly be offset by reinstating the SALT cap after it is set to expire with the majority of the Tax Cuts and Jobs Act in 2026. This is an obvious shell game; paying for repeal of SALT cap by extending that very SALT cap does not pass the credibility test. In reality, this is setting the stage for over $1 trillion of tax cuts over the decade. Claims that SALT cap repeal would not add to the debt are highly misleading and not grounded in reality.

As we’ve said before, repealing the SALT cap in Build Back Better would be a costly mistake.

 

The despicables in Congress tried to slip this past everyone, hoping in all the fuss and noise no one would realize just exactly what it is.

Didn't work.

So now, despicables on this forum have to make a choice; support their robbers in Congress or condemn them for attempting to rob us and enrich themselves.

Shooter predicts most despicables would rather whack off their sex organs than admit their lords and masters tried a quick one.

 

BBB. At my place means Beer BBQ & Bullshit

 

Democrats try to break BBB into smaller bills to overcome Manchin, Sinema objections

President Joe Biden and other Democrats have suggested that the party could break up the $1.85 trillion “Build Back Better” (BBB) social spending package into smaller, more targeted bills to pass some parts of the scheme after its defeat. at the end of December.

Biden and other Democratic leaders spent the second half of 2021 pushing for the passage of the BBB. Biden focused on moderate Senators Joe Manchin (DW, Virginia) and Kirsten Sinema (D-Aris), who remained opposed to the omnibus bill to the end.

In its short life, the BBB saw price drop after price drop before finally crashing.

Senate Budget Chairman Bernie Sanders (I-Vt.)’s original proposal was for a maximum budget price of $6 trillion. This proposal was too much even for the less moderate Democrats in the Senate; Sanders was forced to revise the bill, which would have been $2 trillion more expensive than all of the United States’ spending on World War II and its aftermath, to $3.5 trillion, a figure moderates found a little easier to digest.

Amid rampant inflation and unprecedented government spending in the months leading up to the bill’s passage, Sinema and Manchin said the $3.5 trillion price tag was too high, and the duo refused to bless the scheme.

Finally, the bill was cut to $1.85 trillion, a heavy blow to progressives who already saw $3.5 trillion as a significant compromise.

However, Manchin strongly opposed the even more gutted bill and effectively destroyed any hope that it could still pass when he said he was still unwilling to vote for the package, saying that White House staff had done “unforgivable things.” with the bill.

After that blow, Biden and his party turned their attention to another priority: the passage of sweeping electoral legislation.

Since any Democratic-sponsored election bill had no chance of getting through the Senate under normal rules, Biden and Senate Majority Leader Chuck Schumer (DN.Y.) supported a filibuster neutralization scheme to circumvent the Republican Party’s objection to the election. legislation that Republican critics say will unfairly benefit Democrats, not Republicans.

That scheme also failed, again at the hands of Manchin and Cinema, who on Wednesday voted with the Republicans against the filibuster exception.

After this defeat, the Democrats are considering going back to the BBB again. But instead of passing the welfare package in the form of a consolidated bill, the latest plan to pass party legislation involves breaking the bill into smaller parts.

During a press conference Wednesday at the White House, Biden raised the idea with reporters.

“It’s clear to me that we’re probably going to have to smash it,” Biden said. “I think we can get – I’ve been talking to a number of my colleagues on the hill – I think it’s clear that we can get over $500 billion to address energy and environmental issues.”

Senator Ron Wyden (D-Oregon) also discussed the proposal with reporters Thursday, detailing what these individual bills might look like.

After initial talks between Manchin, Sinema, and the White House, Wyden reported that he told colleagues, “I thought it made sense to move forward with a few priorities.”

In particular, Wyden proposed separate bills to address the so-called “climate crisis”, to control spending on healthcare and prescription drugs, and to renew the Child Tax Credit (CTC).

Widen mused that these smaller bills could satisfy Manchin, who, according to Widen, is “rightly concerned” with inflation and rising costs. Smaller denominations, Wyden suggested, could satisfy these concerns and garner Manchin’s support.

Senator Michael Bennett (D-Colorado) also stressed the critical importance of the CTC to Democratic policy goals.

“The president himself said that, in his opinion, [the CTC is] one of his administration’s most important achievements in domestic politics,” Bennett said, adding that the CTC is “very popular in Congress, very popular with the leadership of the Senate and the House of Representatives.”

“We won’t give up,” Bennet promised, saying he and others would “fight tooth and nail” to restart the program.

In an appearance Thursday on Fox, Senate Minority Leader Mitch McConnell (R-Kentucky) discussed the Democrats’ latest legislative move, which he says the American people “do not qualify for.”

Instead of acting like a moderate, as he presented himself during the 2020 election, McConnell said that over the past year, Biden has “adopted the Bernie Sanders recipe for America.”

But, as McConnell argued, Biden “did not get a mandate” for this wide-ranging progressive agenda because his party won only the smallest possible majority in the Senate and performed marginally better in the House of Representatives, where Democrats hold only a few seats. more than Republicans.

With such a narrow majority, McConnell said Biden and his party “couldn’t get it done.” He added: “The reason they couldn’t get it there [is that] The American people are not up for it all. They thought they were choosing the moderate.”

McConnell said if Biden “reinvents himself and goes back to the middle” Republicans will want to work with him. But at the BBB, as McConnell made clear, the Republicans remain opposed.

It remains to be seen if these proposed separate bills will be able to garner the support of Manchin and Sinema.

The BBB originally included about $550 billion in climate spending, but Manchin has opposed several of his party’s climate proposals in the past, including proposed tax credits for electric vehicles, government-funded incentives for “clean energy” transitions, and others that could hurt his addicts. coal voters in West Virginia.

Because of their narrow Senate majorities, Democrats will need to unanimously support any proposal that goes before the Senate, meaning that Manchin and Cinema’s votes will be critical to achieving any Democratic political goals.

 

The Despicables are fascists, not communists. They serve the bankers and the war profiteers and the corporate drug pushers, not the people.

Capitalism devolves into fascism: When the concentration of power and wealth becomes so great that the class-divide becomes unmanageable, the plutocrats replace the velvet glove with the iron fist.

* Fascists divide the working class, love war, empower the state, and hide behind fake utopian ideals like "Equality"
* Communists unite the working class, love peace, empower the individual, and reject utopian ideals and nonsensical rights.

 

This is what a real "Insurrection" would look like! It would replace the Club of Billionaires and the Pyramid of Parasites with government of, by, and for the people.

 

Now we see that the wheels have come off of the biden plan.
No $TRILLION pig bill.
No change in Senate voting rules.

Just two more failures laid at the base of the despicable administration.
Meanwhile, the debt continues to grow out of control.
Inflation continues.
Covid still rules our lives.

And while Washington burned, the despicables continued their pillage of our government.

 

We have these 2 Senators to thank for that:



The rest of those that voted against it is what we get with 'party politics'...these 2 are the most powerful on this Planet for the next 11 months.

 

Those two and 50 deplorables who refused to vote for pork.

 

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