Chuck Schumer Pledges To Cut Taxes for the Wealthy
Democratic Senate Majority Leader Chuck Schumer said Tuesday at the Democratic National Convention (DNC) that he intends to do his part to help wealthy filers living in blue states pay less in federal taxes.
Schumer told reporters that he won’t allow the state and local tax (SALT) deduction cap to extend beyond its 2025 expiration date so long as he remains the leader of the Democratic caucus, according to The Hill. The SALT deduction allows taxpayers to deduct some of what they pay in state and local taxes from what they owe the federal government, meaning that it is especially impactful in states with higher taxes, which tend to be blue states.
“We Democrats, as long as I’m leader, when state and local deductibility expires, it will be gone,” Schumer told reporters, per the Hill.
Former President Donald Trump and fellow Republicans were able to cap SALT deductions at $10,000 in the 2017 Tax Cuts and Jobs Act, which expires in 2025, according to The Hill. That particular provision allowed for the federal government to capture revenues that were lost by other changes to the tax system inside the Trump-era bill, such as a reduction of the corporate tax rate from 28% to 21%.
SALT deductions could be an important political factor in Long Island, New York, come November’s elections, given that it is home to swing districts that could determine the balance of power in the House, according to The Hill. Schumer specifically mentioned Long Island in his Tuesday remarks to reporters about the future of the SALT deduction.
Vice President Kamala Harris’ campaign has stated that she will not raise taxes on people making less than $400,000 annually if elected, and her campaign has also said that she favors raising the corporate tax rate back up to 28%. If she were to align with Schumer on the issue of SALT deductions, she would be effectively endorsing a walkback of two of the major elements of the Trump tax cuts that many point to as factors in the solid economic performance that followed.
Schumer’s office did not respond immediately to a request for comment.
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He knows that he, Pritzker, Obama, and Pelosi need tax relief.
I lived in New Jersey and I can tell you that the SALT limitation affects most everyone who owns a house there. My property taxes alone were $11,000 a year and I lived in a middle class neighborhood. With the SALT limitations I was no longer able to deduct all my property taxes and therefore none of my state income taxes. The SALT limitations were implemented to screw over people in high tax states which are probably all blue states and where most homeowners will be affected. Those tax increases have minimal affect on rich people, but it was part of the reason, why I, a middle class person, had to leave the state.
I could be wrong, but it sounds like the real reason you had to leave the state was that your property taxes on a middle-income home were ELEVEN FRICKEN THOUSAND dollars. That’s crazy – and that’s the real problem. Not the SALT provision that simply lets blue-state politicians off the hook after raping their own constituencies.
Yes, $11,000 is a ridiculous amount for property taxes, but my point is that the SALT limitations aren’t just a tax increase for rich people. They are a substantial hit to many middle class people.
I get that. I’m just saying that if your property taxes weren’t ridiculous in the first place, the SALT deduction would be of little consequence.
New Jersey is the national joke. Paying hundreds of thousands to administer Anchor Benefits are a feeble attempt to try to prevent the hemorrhage to Florida that only they can dream up. Murphy, Cuomo and Hochul are a trifecta assault on the New York/New Jersey land of Demwit Dementia dismantling the middle class.