CNBC: Democrats May Violate Biden’s Campaign Pledge With Plan to Increase Taxes
Democrats may violate President Joe Biden’s pledge not to raise taxes on Americans making less than $400,000 annually, according to CNBC.
The party’s lawmakers are considering a plan to revive the state and local tax (SALT) deduction, CNBC’s Ylan Mui noted in a morning segment for Squawk Box. The deduction allows Americans to write off those taxes before filing with the federal government, benefiting those in high-tax states, and disproportionately aiding wealthy Americans until former President Donald Trump capped the deduction at $10,000.
Democrats are considering the move as a technical means to halving the price of their spending plan, from $3.5 trillion to $1.75 trillion.
“Democrats are claiming that they’ve cut the price tag of their social spending package by more than half, but they’re using some fuzzy math to get to that $1.75 trillion figure,” Mui said, highlighting the fact that the proposal would reintroduce the cap for five years beginning in 2027.
“If you include that full SALT repeal, you could end up with a net tax cut for many millionaires,” Mui said. “That’s sort of not making good on their promise to tax the rich. And, by the way, if you add the cap back at the end of those five years, you could then end up increasing taxes on people making less than $400,000 a year.”
Biden promised during his campaign that in the event of his election, those making less than $400,000 wouldn’t pay “one more penny in taxes, guaranteed, my word on it.”
Mui added a critical assessment of spending proposals at the center of the plan, which would expire before their costs are paid. Examples include:
- Six years for universal pre-K
- Four years for Medicaid expansion
- One year for an expanded child tax credit
“Democrats are upfront about this,” Mui said. “Their strategy is to create as many new programs as possible, and then build public support for keeping them around.”
Watch above via CNBC.
