Nancy Pelosi Blasted for Proposing Tax Benefit That Will Only Help Wealthy Americans
House Speaker pushes for tax breaks for top earners
House Speaker Nancy Pelosi (D-Calif.) wants to give top-earning Americans tax relief in the next coronavirus stimulus package, despite the Democrats routinely accusing the Republicans of giving tax breaks to big corporations.
The House Speaker faced backlash after suggesting a reversal on a $10,000 cap on state and local tax deductions, known as SALT, which was included in the 2017 Republican tax reform bill.
"We could reverse that for 2018 and 2019 so that people could refile their taxes," Pelosi said as per The New York Times.
"They'd have more disposable income, which is the lifeblood of our economy, a consumer economy that we are."
The rollback "would provide a quick cash infusion in the form of increased tax rebates to an estimated 13 million American households," the Times reported.
According to Politico, Economists and tax experts blasted Pelosi’s idea, saying the move wouldn’t give the economy much of a boost.
“This is not a good idea,” said Michael Linden, executive director of the progressive Groundwork Collaborative.
“It would not help the economy heal, and it would not benefit the people who need help.”
Those benefiting would be exclusively American households earning more than $100,000 per year.
Democrats oppose SALT deduction limits due to the fact they often represent wealthier Americans who live in states and cities with high taxes, such as California, New York, and New Jersey.
"Restoring the SALT deduction, as Speaker Pelosi advocated, would once again force low and middle-income people to subsidize wealthy individuals in high tax states and municipalities — like the Speaker's home in San Francisco, California," Sen. Pat Toomey (R-Pa.) said, The Hill reported.
Pelosi Refuses to Take Coronavirus Test Despite Being Exposed to Infected Lawmaker— Neon Nettle (@NeonNettle) March 31, 2020
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Seth Hanlon, a senior fellow at the liberal Center for American Progress, added that Pelosi's proposal "doesn't strike me as the most effective way of targeting economic stimulus."
"There are ways you could target it to truly middle-class people," Hanlon explained.
"The problem is, relatively few middle-class people claim SALT."
“We know a lot of the areas that are getting hit hardest by the coronavirus were hit by SALT, too,” said Rep. Josh Gottheimer (D-N.J.).
“Many small businesses have been crushed by this. We have to help them get back online.”
Last week, Pelosi came under fire after she pushed $25 million in taxpayer money for the Kennedy Arts Center into the emergency coronavirus stimulus package that finally passed in the Senate.
The Senate passed the massive $2 trillion compromise package by a vote of 96-0, ending days of deadlock and sending the bill to the House of Representatives.
But just hours after the $2.2 trillion economic relief package was signed, musicians who work there were informed they would no longer be paid.