In the grand ballroom of American politics, Democrats have long waltzed to the melody of progressivism while ridiculing Republicans’ preference for outdated tax cut tunes. Ironically, they don’t want to pay for their style of big government with higher taxes on ordinary Americans, which their expansionary ambitions would require. Instead, they loudly proclaim that they want to tax the rich. It remains to be seen how true this is.
Indeed, while Democrats profess their devotion to social justice and fight against income inequality, they often push for policies that favor the rich. Take their nonstop battle over the last five years to ease the tax burden of their high-income constituents.
The State and Local Tax (SALT) deduction cap, part of the 2017 Tax Cuts and Jobs Act (TCJA), placed a $10,000 limit on the amount of state and local taxes that can be deducted from federal taxable income. This move predominantly affected high earners in high-tax states like New York, California, and many others that are Democratic strongholds.
That’s a tax hike on the rich. This shouldn’t bother Democrats, who are usually happy to demonstrate their egalitarian chops by clamoring for that very thing. Yet this time, by demanding repeal of the SALT cap, they are on the front lines of a battle to restore tax breaks for the rich. As it turns out, when affluent Californians and Northeasterners felt the pinch, Democrats were ready to cha-cha for tax relief.
Contrast this with the refusal by moderate New York Republicans to vote for Jim Jordan (R–Ohio) for House speaker in exchange for doubling the deduction cap to $20,000 for individuals and $40,000 for married couples. Now, this might mean these guys really didn’t want Jordan as speaker, but they wouldn’t roll over even in exchange for tax cuts for their own constituencies.
Would New York Democrats be so principled? Back in 2021, 17 of 19 members of this delegation threatened to block a Democrat-sponsored infrastructure bill if the SALT deduction cap wasn’t entirely repealed. I would have been OK with that crony bill failing; I highlight this incident only to reveal some Democrats’ commitment to tax breaks for rich blue-state voters.
Hellbound and Down 