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The Democrats of Salt Have Given Up

Do you remember how Democrats from New Jersey and New York who serve in the House of Representatives made a commitment to vote against a tax-and-spending package if it failed to raise the cap on the amount that can be deducted for state and local taxes to $10,000?

Watch what they say with your eyes. Rep. Tom Suozzi of New York stated that “no SALT, no deal” would be acceptable.

On Friday, every one of them went back on their word, which allowed the bill to be approved in the House by a vote of 220-207, with the majority coming from one party.

The explanations provided by the SALT caucus are entertaining because of how they divert attention. According to New Jersey Representative Josh Gottheimer, “this bill does not raise taxes on households or small businesses in my area by one single dime.”

“We also blocked those in conservative states who were seeking to further gut SALT, as well as those who sought to hike taxes on individuals and small businesses in Jersey,”

Mr Gottheimer and his fellow SALT members were unable to halt anything. They gave the Senate agreement that Majority Leader Chuck Schumer had negotiated with Senator Joe Manchin of West Virginia and that had been fine-tuned by Senator Kyrsten Sinema of Arizona its unanimous approval.


As humorous is Mr Suozzi’s justification for his actions. The Inflation Reduction Act does not result in an increase in personal income taxes, therefore the adage “No SALT, no deal” does not apply, as he explained.

“I will insist that we reinstate the state and local tax deduction if there is any adjustment that is proposed in the personal income tax rate,” said the congressman. In the vow that he made in September of last year, he did not specify that this particular criterion is met.

It is important to take note that his new red line pertains to increasing the rates of personal income taxation. He must be aware that the $80 billion in additional funding that the measure provides for the Internal Revenue Service (IRS) would lead to an increase in the number of taxpayers who are audited and the amount of money that they pay in taxes.

According to estimates provided by the Joint Committee on Taxation of Congress, between 78 and 90 per cent of the revenue that the Internal Revenue Service (IRS) could potentially collect from ostensibly unreported income would most likely come from taxpayers with annual incomes of less than $200,000.

Only four per cent to nine per cent of the total would come from people making more than half a million dollars. This is due, in part, to the fact that the audits will concentrate on pass-through firms, which include a significant number of small enterprises.

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Because this Congress did not vote to alter the limit of $10,000 that can be deducted for state and local taxes, it will likely continue to be in effect at least until the year 2025, when it is scheduled to be phased out.

Even if they win back control of the House and Senate in November, Republicans won’t make any changes to this policy.

This indicates that high incomes are expected to continue migrating away from states with high tax rates and towards states with lower tax rates, such as Arizona, Florida, or Tennessee.

Speaker Nancy Pelosi owes her majority to the SALT Democrats, many of whom campaigned on a promise to repeal the 2017 GOP tax reform’s deduction limit and won their seats as a result.

Pelosi’s majority is due to the SALT Democrats. It should not come as a surprise, however, that these Democrats in the House, including New Jersey’s Mikie Sherrill and Tom Malinowski, ultimately caved in and did what the Speaker instructed them to. They always follow through with it.

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