Quantcast
Connect with us

‘Pelosi’s terrible idea’: Critics denounce proposal to give wealthy a tax cut in next stimulus package

Published

on

“This is almost unbelieveable.”

House Speaker Nancy Pelosi is reportedly set to propose rolling back a cap on tax deductions, which would benefit high-earning Americans, as part of the next step of an economic stimulus package that has already poured trillions into the U.S. economy—much of it going to the richest individuals and corporations in the country.

ADVERTISEMENT

“This is almost unbelievable,” HuffPost senior reporter Emily Peck tweeted in response to the news. “Of all the things to do to help people; she wants to… give upper middle class people a tax break.”

The California Democrat’s plan to retroactively undo the state and local tax (SALT) deduction limits would be a major tax break for households earning over $100,000, according to critics like University of Michigan professor Justin Wolfers.

“Retroactive tax deductions are always a bad idea—a giveaway that gets you nothing—and this one goes almost entirely to household on at least $100,000 a year,” said Wolfers of the plan.

ADVERTISEMENT

As the New York Times reported, there is skepticism over the Pelosi proposal:

 The congressional Joint Committee on Taxation estimated last year that a full repeal of the SALT limit for 2019 alone would reduce federal revenues by about $77 billion. Americans earning $1 million a year or more would collectively reap $40 billion of those benefits. Most of the rest would go to households earning $200,000 or more.

[…]

Many liberal economic policy analysts also oppose lifting the SALT cap, calling it regressive tax policy. Seth Hanlon, a senior fellow at the liberal Center for American Progress, said the same logic was also a reason not to lift the limit in the next economic rescue bill. That is particularly true because consumption data show that low- and middle-income Americans are more likely than higher earners to spend benefits from the government immediately and stimulate economic activity.

Pelosi’s spokesman Henry Connelly claimed in a statement for the Times that the speaker’s plan would be means-tested and “tailored to focus on middle-class earners and include limitations on the higher end.”

ADVERTISEMENT

Nonetheless, rolling back the deductions would benefit millionaires and billionaires more than those making hundreds of thousands of dollars a year, as activist James Medlock showed on Twitter.

ADVERTISEMENT

In a statement, Patriotic Millionaires chair Morris Pearl dismissed Pelosi’s plan as “a huge mistake.”

“The last people who need help right now are the well-off taxpayers who would be affected by this change,” said Pearl. “Congress should instead be prioritizing low-income and middle-class workers most directly hurt by the economic effects of the coronavirus.”

ADVERTISEMENT

Pearl, former managing director of investment firm Blackrock, added that people in his economic bracket were most likely to weather the storm of the pandemic without much economic pain.

“If Democrats want to be the party of working people, prioritizing tax cuts for wealthy taxpayers, even in blue states, is not the right thing to do,” said Pearl. “We already have too many politicians in Washington whose answer to every problem is to cut taxes for the rich.”


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Trump is ‘a soulless man with a broken mind’: George Conway calls out his wife’s boss in scathing op-ed

Published

on

George Conway, the prominent Republican attorney married to White House counselor Kellyanne Conway, blasted his wife's boss in a new Washington Post op-ed published online on Friday evening.

"Until three brief months ago, President Trump never faced a serious crisis, at least one not of his own making. But now he has faced two, and is failing two, in short order: the covid-19 pandemic, with its concomitant economic devastation; and now social unrest, and rioting, stemming from the killing of George Floyd in Minneapolis police custody," Conway wrote. "Lacking in humanity, Trump has had no idea how to handle either one."

Continue Reading

Breaking Banner

A historian details Trump’s surprising and peculiar relationship with America’s Puritan legacy

Published

on

Whatever one feels about it, the ‘Trump phenomenon’ is often described as the US version of a populist trend that has impacted on many areas of contemporary global politics.  However, despite the global political similarities, Donald Trump’s success is also rooted in a peculiarly American experience, since a very large and influential part of his support base lies among Christians of the so-called ‘evangelical right’.

The presidential inauguration, in 2017, featured six religious leaders, more than any other inauguration in history.  Since then many evangelical leaders have (controversially) claimed that God has placed Trump in the White House, despite his character flaws, because he is the man who will get God’s work done at this – in their  view – critical point in US and world history. As a result, the influence of evangelical Christians on American politics has never been more pronounced. From the appointment of Supreme Court judges to US relations with Israel, from support for ‘The Wall’ to abortion legislation, the power of this extraordinary lobby is seen in the changing politics and policies of the nation. A veritable culture war appears to be occurring over the future direction of the USA; a battle for the ‘soul of America’.

Continue Reading
 

Breaking Banner

Trump supporters desperately grasp at a new ‘gotcha’ to discredit a national social justice uprising

Published

on

Unable to defend the extrajudicial killing of black people by the police or the viciousness of police assaults on peaceful protesters, conservatives are grasping desperately at a new gotcha to discredit the recent national uprisings: Liberals are a bunch of hypocrites. This time, however, it's got a coronavirus twist, as progressives are being accused of hypocrisy for supporting the protests while allegedly opposing all other social gatherings in the name of "public health."

Continue Reading
 
 
You need honest news coverage. Help us deliver it. Join Raw Story Investigates for $1. Go ad-free.
close-image