The most expensive item over the first half-decade of President Joe Biden’s climate and social spending legislation is a tax cut for the wealthy.
The Democratic Build Back Better Act, which passed the House on Friday morning, raises the current $10,000 cap on federal tax deductions for state and local taxes to $80,000, a move that leads to a significant tax cut for high earners in states with high taxes.
The provision dwarfs many of the other priorities in the legislation and was included under pressure from a vocal contingent of Democrats from high-tax blue states.
The nonpartisan Committee for a Responsible Federal Budget said that increasing the SALT cap to $80,000 through 2025 would end up costing the federal government $275 billion in revenue — an amount that is $5 billion more than the next costliest provision in the Build Back Better Act.
Hellbound and Down 