SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Sen. Bernie Sanders (I-Vt.) speaks to reporters following a vote at the U.S. Capitol on April 12, 2021 in Washington, D.C. (Photo: Drew Angerer/Getty Images)
'Sends a Terrible, Terrible Message': Sanders Rejects Top Dems' Push for a Big Tax Break for the Rich
"You can't be on the side of the wealthy and the powerful if you're going to really fight for working families."
May 10, 2021
Sen. Bernie Sanders made clear in an interview Sunday that he opposes the push by top Democrats to restore a tax deduction that overwhelmingly benefited the richest households in the U.S., saying such an effort "sends a terrible, terrible message" at a time of crippling economic pain for poor and working-class people.
"You have got to make it clear which side you are on--and you can't be on the side of the wealthy and powerful if you're going to really fight for working families," Sanders (I-Vt.), the chair of the Senate Budget Committee, said in an appearance on "Axios on HBO."
The tax break in question is known as the state and local tax (SALT) deduction, which former President Donald Trump and Republican lawmakers capped at $10,000 as part of their 2017 tax law. While the GOP tax measure was highly regressive--delivering the bulk of its benefits to the rich and large corporations--the SALT cap was "one of the few aspects of the Trump bill that actually promoted tax progressivity," as the Washington Post pointed out last month.
According to a recent analysis by the Institute on Taxation and Economic Policy (ITEP), 62% of the benefits of repealing the SALT cap would go to the richest 1% and 86% of the benefits would go to the top 5%. ITEP estimated that temporarily suspending the cap would cost more than $90 billion in just one year.
"There is no state where this is a primarily middle-class issue," the organization found. "In every state and the District of Columbia, more than half of the benefits would go to the richest 5% of taxpayers. In all but six states, more than half of the benefits would go to the richest 1%.
Nonetheless, prominent Democrats from blue states--which were disproportionately impacted by the SALT cap--are demanding full restoration of the tax break in President Joe Biden's infrastructure package, disingenuously characterizing the cap as a major burden on the middle class.
While Biden did not include the SALT cap repeal in his opening offer unveiled in March, Democrats such as House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Chuck Schumer (D-N.Y.), and Tom Suozzi (D-N.Y.) are calling for a revival of the deduction.
As Common Dreams reported last month, Suozzi is part of a potentially influential faction of House Democrats that is threatening to oppose Biden's infrastructure package if the SALT cap repeal is not included.
Though much of the New York congressional delegation has come out in favor of repeal--including progressive Reps. Jamaal Bowman (D-N.Y.) and Mondaire Jones (D-N.Y.)--Rep. Alexandria Ocasio-Cortez (D-N.Y.) said last month that she doesn't "think that we should be holding the infrastructure package hostage for a 100% full repeal on SALT, especially in the case of a full repeal."
"Personally," Ocasio-Cortez added, "I can't stress how much that I believe that is a giveaway to the rich."
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Sen. Bernie Sanders made clear in an interview Sunday that he opposes the push by top Democrats to restore a tax deduction that overwhelmingly benefited the richest households in the U.S., saying such an effort "sends a terrible, terrible message" at a time of crippling economic pain for poor and working-class people.
"You have got to make it clear which side you are on--and you can't be on the side of the wealthy and powerful if you're going to really fight for working families," Sanders (I-Vt.), the chair of the Senate Budget Committee, said in an appearance on "Axios on HBO."
The tax break in question is known as the state and local tax (SALT) deduction, which former President Donald Trump and Republican lawmakers capped at $10,000 as part of their 2017 tax law. While the GOP tax measure was highly regressive--delivering the bulk of its benefits to the rich and large corporations--the SALT cap was "one of the few aspects of the Trump bill that actually promoted tax progressivity," as the Washington Post pointed out last month.
According to a recent analysis by the Institute on Taxation and Economic Policy (ITEP), 62% of the benefits of repealing the SALT cap would go to the richest 1% and 86% of the benefits would go to the top 5%. ITEP estimated that temporarily suspending the cap would cost more than $90 billion in just one year.
"There is no state where this is a primarily middle-class issue," the organization found. "In every state and the District of Columbia, more than half of the benefits would go to the richest 5% of taxpayers. In all but six states, more than half of the benefits would go to the richest 1%.
Nonetheless, prominent Democrats from blue states--which were disproportionately impacted by the SALT cap--are demanding full restoration of the tax break in President Joe Biden's infrastructure package, disingenuously characterizing the cap as a major burden on the middle class.
While Biden did not include the SALT cap repeal in his opening offer unveiled in March, Democrats such as House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Chuck Schumer (D-N.Y.), and Tom Suozzi (D-N.Y.) are calling for a revival of the deduction.
As Common Dreams reported last month, Suozzi is part of a potentially influential faction of House Democrats that is threatening to oppose Biden's infrastructure package if the SALT cap repeal is not included.
Though much of the New York congressional delegation has come out in favor of repeal--including progressive Reps. Jamaal Bowman (D-N.Y.) and Mondaire Jones (D-N.Y.)--Rep. Alexandria Ocasio-Cortez (D-N.Y.) said last month that she doesn't "think that we should be holding the infrastructure package hostage for a 100% full repeal on SALT, especially in the case of a full repeal."
"Personally," Ocasio-Cortez added, "I can't stress how much that I believe that is a giveaway to the rich."
Sen. Bernie Sanders made clear in an interview Sunday that he opposes the push by top Democrats to restore a tax deduction that overwhelmingly benefited the richest households in the U.S., saying such an effort "sends a terrible, terrible message" at a time of crippling economic pain for poor and working-class people.
"You have got to make it clear which side you are on--and you can't be on the side of the wealthy and powerful if you're going to really fight for working families," Sanders (I-Vt.), the chair of the Senate Budget Committee, said in an appearance on "Axios on HBO."
The tax break in question is known as the state and local tax (SALT) deduction, which former President Donald Trump and Republican lawmakers capped at $10,000 as part of their 2017 tax law. While the GOP tax measure was highly regressive--delivering the bulk of its benefits to the rich and large corporations--the SALT cap was "one of the few aspects of the Trump bill that actually promoted tax progressivity," as the Washington Post pointed out last month.
According to a recent analysis by the Institute on Taxation and Economic Policy (ITEP), 62% of the benefits of repealing the SALT cap would go to the richest 1% and 86% of the benefits would go to the top 5%. ITEP estimated that temporarily suspending the cap would cost more than $90 billion in just one year.
"There is no state where this is a primarily middle-class issue," the organization found. "In every state and the District of Columbia, more than half of the benefits would go to the richest 5% of taxpayers. In all but six states, more than half of the benefits would go to the richest 1%.
Nonetheless, prominent Democrats from blue states--which were disproportionately impacted by the SALT cap--are demanding full restoration of the tax break in President Joe Biden's infrastructure package, disingenuously characterizing the cap as a major burden on the middle class.
While Biden did not include the SALT cap repeal in his opening offer unveiled in March, Democrats such as House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Chuck Schumer (D-N.Y.), and Tom Suozzi (D-N.Y.) are calling for a revival of the deduction.
As Common Dreams reported last month, Suozzi is part of a potentially influential faction of House Democrats that is threatening to oppose Biden's infrastructure package if the SALT cap repeal is not included.
Though much of the New York congressional delegation has come out in favor of repeal--including progressive Reps. Jamaal Bowman (D-N.Y.) and Mondaire Jones (D-N.Y.)--Rep. Alexandria Ocasio-Cortez (D-N.Y.) said last month that she doesn't "think that we should be holding the infrastructure package hostage for a 100% full repeal on SALT, especially in the case of a full repeal."
"Personally," Ocasio-Cortez added, "I can't stress how much that I believe that is a giveaway to the rich."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.
To inform. To inspire. To ignite change for the common good.
News & Opinion
Trending
Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit
Privacy Policy