Former Obama adviser slams Dem tax proposal favoring wealthy as ‘obscene’

Democrats often talk a big game about hiking taxes on the wealthy, but the rhetoric doesn’t always hold up in reality.

A chief economic adviser to former President Barack Obama was outraged to learn that congressional Democrats and the Biden administration had proposed a repeal of the 2017 cap imposed on federal deductions for state and local taxes (SALT), Fox News reported.

The SALT deduction, which allows for state and local taxes to be written off from a taxpayer’s federal burden, and predominately favors the wealthy living in high tax states — typically run by Democrats — had been limited to $10,000 by the 2017 Tax Cuts and Jobs Act under then-President Donald Trump.

But House Democrats representing high tax blue states — undoubtedly under pressure from wealthy constituents and donors — have been hollering about repealing that limitation ever since, and may now be on the verge of doing so in the multi-trillion-dollar domestic spending legislation still under negotiation.

SALT cap repeal “obscene”

Jason Furman, the chairman of Obama’s Council of Economic Advisers, was none too pleased to hear that news, and he took to Twitter to explain why.

“My guess is the majority of Americans with a net worth of $50 to $300 million would get a tax cut under the Build Back Better plan with a full repeal of SALT,” Furman wrote. “The bill would do more for the super-rich than it does for climate change, childcare or preschool. That’s obscene.”

He went on to note in his explanation that if the SALT deduction limitation is ultimately repealed, individuals earning anywhere from $10-$40 million annually — with net worths ranging from $200 million to $1 billion — would actually be likely to see their net tax burden decrease.

That, obviously, runs directly counter to the Democratic messaging out of the White House and Congress — dutifully echoed by the media — about how the wealthy in America don’t pay their “fair share” and should be required to pay more in taxes.

Feds would lose revenue

Fox Business reported that the push to repeal the SALT deduction cap for a five-year period was being led by House Democrats in New York and New Jersey, both predominately blue states with higher than average state and local tax burdens.

It isn’t just House Democrats acting blatantly hypocritical on the issue, though, as Senate Democratic Leader Chuck Schumer (D-NY) has also reportedly filed legislation in the Senate as a companion to the House effort to get rid of the $10,000 cap on SALT deductions — which, prior to the cap, tended to be two to three times higher on average than the new limit.

Perhaps even more ironic is that if the cap is repealed, the federal government would actually stand to lose anticipated revenue, which is totally bizarre in light of the Biden administration’s insistence on ensuring there is more than enough revenue inflow to cover the exorbitant costs of the president’s Build Back Better domestic spending agenda.

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