Democrats Push for Massive Tax Cut for the Richest, Brookings Says
WASHINGTON Democrats are pushing to lift the cap on the federal tax deduction for state and local taxes (SALT), but a Brookings Institution study says this would be a handout to the rich.
Lifting the cap on the SALT deduction would massively favor the rich, with most of the benefit going to the top 1 percent, Richard Reeves and Christopher Pulliam from the Brookings Institution wrote in a recent report.
House Democrats passed the $3 trillion HEROES Act in May. Buried in the 1,815-page relief bill is a provision that would eliminate the limitation on the SALT deduction for 2020 and 2021.
Democrats argue that lifting the cap would provide relief to people hit hardest by the virus, especially in devastated cities such as New York.