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.”