Report: Joe Biden Likely to Axe Tax Deduction for Wealthy Blue States in Infrastructure Bill

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President Joe Biden will likely eliminate a proposal to raise the state and local tax deduction (SALT) deduction in the Demcorats’ infrastructure bill, according to a report Wednesday.

Biden told moderate Republicans restoring the SALT deduction would likely be eliminated from the Democrats’ infrastructure package, otherwise known as the Build Back Better Act.

The move would likely enrage moderate Democrats, who have promised that they would not back the package unless they were to raise the SALT deduction.

President Donald Trump and congressional Republicans limited the SALT deduction to pay for the Trump Tax Cuts and Jobs Act. The SALT deduction mainly benefits wealthy blue states such as New York, New Jersey, and California.

House Democrats representing New York and New Jersey have promised to oppose any tax increases in the Build Back Better Act if the bill did not include raising the SALT deduction.

“I think that if it doesn’t happen now, it’s not going to happen,” Rep. Tom Suozzi (D-NY) said. “There’s certainly a lot of support” among House Democrats for reviving the full SALT deduction, he added. “The question is, who’s willing to draw a line in the sand on this issue?”

Reps. Mikie Sherill (D-NJ), Josh Gottheimer (D-NJ), and Bill Pascrell (D-NJ) have also lobbied Democrat leadership to include the SALT reform in the mammoth Build Back Better Act.

“Any changes to the disastrous 2017 Republican tax bill need to address the SALT deduction cap. I’ve been working to get rid of the SALT cap since my first day in office and I’m confident that we’ll be able to find common ground with the Biden administration,” Sherill said.

Gottheimer said, “When it comes to taxes that affect families, my line in the sand is SALT, And I think others share that view.”

Many of these Democrats represent swing districts that could face tougher reelection efforts should they fail to raise the SALT deduction during the 2022 midterm elections.

Senate Majority Leader Chuck Schumer (D-NY) even promised that restoring the unlimited SALT deduction would be “one of the first things I will do” if he were elected to lead Senate Democrats.

Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.

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