Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

For Immediate Release

Press Release

Speaker Pelosi's Idea to Repeal SALT Caps in Coronavirus Stimulus Would Be a Huge Mistake

"If Democrats want to be the party of working people, prioritizing tax cuts for wealthy taxpayers, even in blue states, is not the right thing to do."
WASHINGTON -

Last night, Speaker of the House Nancy Pelosi floated the idea that the next coronavirus stimulus package could include rolling back the Tax Cuts and Jobs Act's $10,000 cap on the state and local tax (SALT) deduction. While the SALT deduction cap disproprtionately impacts blue states, it also disproportionately impacts the wealthy, and repealing the cap would be extremely regressive.

In respose to this news, Morris Pearl, the Chair of the Patriotic Millionaires and a former managing director at BlackRock, Inc., said:

"The priority for Speaker Pelosi at this time should not be a tax break for the well to do. Repealing the SALT cap would be a huge mistake. The last people who need help right now are the well-off taxpayers who would be affected by this change. Congress should instead be prioritizing low-income and middle-class workers most directly hurt by the economic effects of the coronavirus. As a wealthy New Yorker, I'm not worried about my ability to deduct my state and local taxes, I'm worried about all the people who have lost their jobs or had their hours cut as a result of this crisis and how that will affect my state, my city, and my family in the long run.

"If Democrats want to be the party of working people, prioritizing tax cuts for wealthy taxpayers, even in blue states, is not the right thing to do. We already have too many politicians in Washington whose answer to every problem is to cut taxes for the rich."

###

The Patriotic Millionaires is a group of high-net worth Americans who share a profound concern about the destabilizing level of inequality in America. Our work centers on the two things that matter most in a capitalist democracy: power and money. Our goal is to ensure that the country’s political economy is structured to meet the needs of regular Americans, rather than just millionaires. We focus on three “first” principles: a highly progressive tax system, a livable minimum wage, and equal political representation for all citizens.

Senate Barely Approves Scaled Back Legislation on Climate, Taxes, Health care

But thanks to Senator Kyrsten Sinema (D-AZ), there was a huge, last-minute win for the private equity and hedge fund industries

Common Dreams staff ·


'What the Hell is Wrong With Them': GOP Senators Kill $35 Cap on Insulin

'Republicans told millions of Americans who use insulin to go to hell.'

Common Dreams staff ·


World Faces 'Loaded Gun' on Hiroshima's 77th Anniversary

“We must ask: What have we learned from the mushroom cloud that swelled above this city?”

Common Dreams staff ·


'Extremely Concerned': Shelling of Europe's Biggest Nuclear Power Plant More Worrying Than Chernobyl

Ukraine said parts of the facility were "seriously damaged" by Russian military strikes.

Common Dreams staff ·


'Backsliding on Democracy': Indiana Governor Signs Extreme Abortion Ban Bill

'The extremist lawmakers who forced this bill through a special session clearly could not care less about what their constituents want or need.'

Common Dreams staff ·

Common Dreams Logo