Joe Biden, Democrats Seek $625 Billion Tax Cut for Wealthy Coastal Elites

Biden SAUL LOEB/AFP via Getty Images
SAUL LOEB/AFP via Getty Images

President Joe Biden’s “Build Back Better Act,” a filibuster-proof $1.75 trillion budget reconciliation package, gives $625 billion in tax cuts to the nation’s wealthiest blue state residents.

Slipped into the reconciliation package are hundreds of billions of dollars worth of tax cuts for the Democrat Party’s wealthiest donors, that would be paid for by America’s working and middle class.

A newly released analysis of Biden’s budget finds that plans to increase the State and Local Tax (SALT) deduction cap from its current $10,000 to $80,000 would effectively amount to a $625 billion tax for the wealthiest of Americans living in blue states.

The analysis reveals that “a household making $1 million per year will receive ten times as much from SALT cap relief as a middle-class family will receive from the child tax credit expansion.”

CRFB

(Chart via Committee for a Responsible Federal Budget)

“Roughly 98 percent of the benefit from the increase would accrue to those making more than $100,000 per year, with more than 80 percent going to those making over $200,000,” prior analysis from the Committee for a Responsible Federal Budget noted.

Biden has repeatedly claimed that his budget will aid middle class Americans the most. In one statement, Biden wrote that his budget “will lower costs for American families.” In another statement, he wrote that his budget will “cut taxes for the middle class.”

The left-wing Tax Policy Center, though, estimates that Biden’s budget will provide massive tax cuts to the nation’s top five percent of earners while increasing taxes on 20 to 30 percent of middle class earners.

Specifically, the estimate found that Biden’s budget will give a tax cut to 66 percent of Americans earning more than $1 million annually while 78 percent of Americans earning $500,000 to $1 million will get a tax cut.

At the same time, 27 percent of Americans earning $75,000 to $100,000 would see a tax increase along with 19 percent of Americans earning $50,000 to $75,000.

In 2017, former President Trump had the SALT deduction capped at $10,000. Since then, Democrats have sought to deliver their wealthy, blue state donors with a massive tax cut by eliminating the cap altogether or greatly increasing it.

Biden, for instance, had sought to include tax cuts for his billionaire donors in a Chinese coronavirus relief package earlier this year. The plan was ultimately cut from the package. House Speaker Nancy Pelosi (D-CA), in May 2020, also tried to include the plan in a coronavirus relief package.

John Binder is a reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here

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