Phil notes that the Tax Policy Center, a project of the liberal-leaning Brookings Institution and the Urban Institute, finds that the House Democrats’ reconciliation bill would violate Biden’s pledge that no one earning less than $400,000 would see his taxes increase by a single penny.
Perhaps the most eye-popping result is that the bill, in its current form, would provide Americans earning between $500,000 and $1 million an average tax cut of about $6,000.
The tax benefit for the rich comes mostly from the Democrats’ proposal to raise the cap on the deduction for state and local taxes:
*** Nonpartisan Tax Policy Center analyzes House Dems’ Build Back Better plan and finds:
— Average ~$6,000 *tax cut* for those earning between $500,000 and $1 million per year (almost certainly due to SALT) pic.twitter.com/2aSQaOvO5h
— Jeff Stein (@JStein_WaPo) November 11, 2021
Bernie Sanders had hoped to limit the benefit of raising the cap on the SALT deduction to those earning $400,000 or less.