Common Dreams - March 31, 2020
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.
"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.
... 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."
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. ...
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